He wasn't targeted, as he was quite the cash cow, as you said.
What happened, on the Patreon side of things, is that Red released the Halloween build for his Patrons, which includes two female characters getting intimate, not only with the MC, but also with another.
Those two characters, Ara and Faranne, for those who are familiar with the cast, refer to each other as "siblings" because the former was quasi-adopted by the latter. Patreon temporarily disabled Red's page and asked him to change the game, since they don't allow incest. Since the characters in question were of completely different species and the game is very clear about them not actually being related (well, and because Red was stupid rich anyway), the creator said "fuck off, I'll quit Patreon then", and decided to not release any more updates until either the game or the fifth chapter of the game was finished.
He was considering switching to a newer version of the engine after releasing the first half, i.e. Prologue + chapters 1-5, and then work on turning what was supposed to be the second half (chapters 6-9 + epilogue, iirc) into a sequel.
Apparently, that is now no longer the plan...