>>111775199There was some drama behind the scenes and a bunch of crew members from AI Animation (the crew behind Villainous) and it leads to a bunch of crew members leaving throughout production. Because of this, the pilot was probably the last thing they were able to produce that was animated. The reason there wasn't anymore is that, well, there is no more finished animated shorts or episodes as of now.
However, unlike what
>>111775242 says, the show is not dead, but it's going under renovations. The creator of the show posted this on twitter like a week ago, so production for this show is still going on, it's just being kept in secret as of now.
My guess is that Alan wants to integrate his animation studio inside CN so they can be working for them officially instead of working on separate studios. That's a way they can get workers without worrying about history repeating themselves, under CN management things will go smoother.