I don't mean to be flippant, but did they finally discover that an LLM doesn't actually make a compelling GM?
Or that most groups don't want to log into cyberspace on their computer to play their campaign? Or that many people run potato hardware, if they even have computers at all?
Did they miss that TTRPGs are social activities first and games second?
It was a flawed concept from the outset. It's too bad that these folks were laid off, but I don't think it would have been successful unless the project made a major pivot.