is the game dead or will it receive an update?

I think so I haven't seen a update in a while so probably.

From checking on their patreon they quit on working this but are plans on working on a new project.

They didn't really specify on patreon but yeah it's cancelled. Effectively the world expanded so much for their first VN with so many possible routes and choices and CG needed that they probably decided to cancel it and start another one more simpler.

I can't believe this...

Well not actually, I heard that something about the writer was the problem.