it is a posibility, look the dev team burn all the patreon money of this project and the updates where so few and far in between that a lot of supporters well stop supporting the game and retired the funding, so the solution of the dev was to create anew game in partenership with other team and promised that part of the money made on tha other tile will go tto funding and finishing this one.
So, dead? we don't know but if we are being realists here than that's the most probable conclusion, because if the other game does good and is the main focus why stopping that or half assing that project to finish this project that by the point the other project is making money this game would be even more dead and forgoten and probably they will do the same mistakes again of focusing on updating the engine and the controllers and the QOL aspect of the game and adding more minigames and mechanics and all that instead of finishing the sex evens and the story which was the problem the first time
So in my humble opinion i do not see this game being finished by a long shot, but the dev team said they have a plan so we will see