It's too bad they got banned from Steam, but it doesn't surprise me based on what I've played in the past of this game.
If I'm reading that post right, it sounds like they didn't even actually get their store page public yet and were just banned on the initial review. You can still get banned / denied release even if you have an active store page, since Valve manually reviews every adult title before release / sale, so I guess it could be worse.
Steam is much like Patreon with its heavy-handed forced censorship and if you don't play by their rules then you're off or just not welcome on the platform. Under-age looking characters, school settings and the like are most common reasons for bans on Steam. And once you're banned that is pretty much it. There's little to no chance of getting back or appealing.
I hope they didn't censor stuff even more than what is necessary on Patreon, just to try and get on Steam only to be denied. I'll propbably end up buying this update on SubscribeStar to show some support to the dev here.
If the devs want to try and release on GOG.com then they could try that. They'll be more likely to get accepted there than on Steam, but GOG is a small fish, and does nothing in sales like Steam does. There're quite a few well-known games from this site that have released on GOG, however.
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Just keep on doing what you're doing. The game has always been good and just continue working towards that finish line. Free version should help, and please update the game on the itch.io page also. If I buy a final version of these games, I sure as hell don't do it on Steam. I buy it on itch.io or buy a complete version on SubscribeStar. Patreon is a distant third choice which I hate supporting. Steam I never consider since they don't need more control in the adult space, and plus it's highway robbery to the developers with Steam's unfair 30% share.