PD was learning Blender from scratch (modeling, rigging, maps, and animations) while the whole shit with Gadabout 2's delay was first happening. The aim seemed to be a new, smaller animation that started with a mock MUGEN-style Ryu vs Mai battle, using the custom models and modified animations from the existing games.
In early October, they scrapped that plan and are now working on a more traditional Ayane (Dead or Alive/Ninja Gaiden) gangbang scene, still in Blender instead of SFM. By end of October, Ayane and the males were done and the map was being worked on.
Per their words, the sound person for Gadabout 2 is still working on it and there'll be no further updates on its status until "the end of 2025."