Honestly, I have no clue. People have lots of theories but no solid proof of what happened to them. I imagine their poor coding practices, lack of direction, and the "feature creep" is what ultimately ended the project. That's just my theory though.
It's probably a lack of direction. Much like the original Breeding season and Strumpets, the concept of owning a brothel with a bunch of at will sex scenes is alluring to a lot of people into NSFW content, but the reality of actually making a management game caught up with them.
i thought the issue with breeding season is the art creator split and took half the game with them to make a new game, cloud meadow, and the original was just left with a fragment of a game
That did happen, but he left because there was a complete lack of direction in Breeding Season and the game's director kept on adding in new things. Think Yandere Simulator but he was part of a team and the rest of the team shut him down.