That games basically going on a new nintendo console at this point, there's no way several years into development you can rescue a doomed project. Look at Dead Island 2 for instance, announced at the start of the previous gen, launching at the end of it and being ported to a new one.
Was hoping they'd be working on new IP, but I'm guessing anything they've been cooking up these past years have not been greenlit. Well, I hope Metroid turns out well at least, tho I figure some of the key architects left already that worked on previous Metroid Games. Some left to make that Arkham 3DS game and that Xbox exclusive, and I've never heard from them again.
My bet is that they are using the RE Engine this time.
Also, have a look, they already have the character creation in place in Street Fighter 6, which also uses that engine. I can really see this as the character creator for DD2.
Man what a waste. I remember during the first years of the Switch Retro's new game was my most anticipated title. When it became obvious whatever they worked on after Tropical Freeze had been canned I started getting really disappointed in Nintendo's first party output on the system. Retro are probably my favorite devs in the industry and seeing them run around aimlessly like headless chickens is painful. Apparently David Wise was working with them on that cancelled project too... Such a shame.