Yes, it's still being worked on. We've been updating on the Steam forums (and Kickstarter).
The project on KS right now contractually has to be released soon as the script has been finished for over a year, and the entire finished game script is shorter than the King's entire route. So, that's why that's a thing.
I will say that I did try to get the King update out before it launched, but my insomnia and the work that pays my bills interfered very badly this month. It's a bit of a shooting-ourselves-in-the-foot situation in regards to the KS, but rather than working on a demo for the idol game, I've been focusing on the King's route instead. In any case, I should have more time over the next week or so, so hopefully, the update will be done by next Sunday.