The mod is mentioned on /cocg/ from time to time, but most of the action is happening in the modding
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From what I remember, there are three lads (mod-anon, Goatman and AssexFlimp) trying to figure out how to implement new features into CoC2. I can't tell you much about who is doing what, but on the technical / content level, no major breakthrough has happened in a while.
I worked a bit on modding COC2, but found easier to just transfer its content to the RPGMaker engine. The JS plugins play nicely with the display, and it allows the player to avoid dealing with the shit combat system. Implementing scene replays / gallery is also easy AF.