Rumours of a cancellation only came about bc the people who started the rumours of its existence, citing the 2020/21 Nvidia "leaks" as cross-evidence, didn't wanna admit it may have never been a greenlit project. Probably just something circulating the to-do lists of the executive producers over at SE.
The Capcom leaks around the same time weren't complete either, so we can't assume that just bc they're mulling something over that they will eventually work on it, or that if they AREN'T mulling it over then they won't work on it. Get it? Nothing is set in stone, everything is ephemeral even when the pen hits the paper, and the absence of evidence is not the evidence of absence.