So after you escape the room, it just ends up on a black screen saying "There is nothing"....is that what it's supposed to do? I assume I am at the end of the current story?
You are, we just have to wait until the revamp of the early game is done.
He explicitly said on Discord that he doesn't think this is the reason, because he asked Patreon back in December and they said it was fine if he made the original game available elsewhere (as long as they were called different things -- originally, he was going to split it up via subtitles, so Lessons in Love: Something Something vs. Lessons in Love: Legend of the Huggy Boy, but they vetoed that so he just threw away the Lessons in Love name for the SFW version entirely). So whatever their issue is, it wasn't that.
Yep. Cliffhanger.
They may say that, but it was vaguely hinted at in the message he was given during the second incident and there have been other people hit with the same, termination after delivering the uncensored version elsewhere while delivering a complying version on Patreon. The message did specifically mention attempts to circumvent the Patreon rules. Since this is technically not subscriber only content and did affect the entire player base, I do believe this is something I can share in detail despite being posted in patron chat. The following quoted text is a direct, word for word quote from the message shared.
"As I previously explained, content in violation cannot be funded by or linked to or from your creator page in any way, however, we noticed that this type of content is still being shared, which is viewed as a circumvention of our guidelines." -Morgan, Patreon Trust and Safety
As there was no offending content within the huggy boy version that was circulated on the creator page in question and the huggy boy version was the only version there, the only possible explanation is that they took other sites into account. The same game was being circulated elsewhere with none of the Patreon censorship, so that is where it ties to the creator page, because it was the same game by the same developer. The circumvention in question is the SubscribeStar version, AKA the uncensored version, of the game.