Dev has been radio silent on his Patreon and itch.io, his twitter has been inactive for a while too. Unless there's been activity on his Discord I don't think we'll be seeing much from here on out which is unfortunate. I'd also imagine the [abandoned] tag is going to come along sometime soon. Again they could very well be active on their discord but for the time being things look bleak.
I can confirm, he hasn't said a thing on his Discord since the message from last December.
Personally, I'd be willing to bet he's been slowly working on a new, smaller-scale project. This is based on a few things he said before the radio silence.
His update history was always sparse; there was like a 14-month period between the release of Lusty Town and its first major update. This leads me to believe that if he is working on a new game, he's not going to release until there's a lot to share.
But for all I know, he may have hung up his NSFW-dev hat and decided to focus on himself.
He did state an intent to return to Lusty Town, but he said he was feeling overwhelmed by the scope of what Lusty Town was becoming. Personally...I'm going to consider it abandoned. But I would be very pleasantly surprised to be proven wrong someday.