Due a recent pony game got C&D i'm gonna be optimistic in saying this game also be put in a huge hiatus until they come up with something to prevent the inevitable C&D from Hasbro :/
So uhhh if happens then its because there's nothing to be done about, if doesn't then the hype its alive
the problem is their options are pretty much they
1. move forward and hope they dont become the next target, which means the project would constantly be in danger.
2. drop the project entirely, would probably be the safest choice but least likely for them to go with since if they were that scared of C&Ds they wouldnt be makin a parody game in the first place.
3. change the characters so they no longer resemble the canon characters and instead are more like oc's or pallet swaps of the original characters, this bein the most likely choice since it would allow them to move forward without any legal issues the downside bein is most people would lose interest and they would lose a looot of support if they did that since most people are here to fuck their pony waifus not some knockoffs.
4. do this as an unfunded side project, that would let them continue to develop it without having to worry about any legal issues but the downside would be it would become their lowest priority and even tiny updates would take ages to come out which would also lose them a lot of support.
those are just the options i could think of but idk the ins and outs of all the legal mumbo jumbo so for all i know theres much simpler solutions im just not thinkin of either way to me it seems like no matter what they go with its a double edged sword pretty much