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As for why the development is taking so long: Campo Santo was acquired by Valve.
Another one bites the dust.
Silksong is another great example.
Just let go of it and move one, play Elden Bling or Baldurans Gate III.
It is possible that after Valve bought Campo Santo they put this project on hold. It is the unofficial news right now.
Alyx was released almost 4 years ago.
So it means originaly Firewatch developers (those developers who went merge with valve ) working on other Valve's projects as well -- that would make sense why it is so ... long for simple exploration - narration game. Hope story would be great as much as Firewatch has.
Looking for E3 annoucment.
In this situation this game might never see a daylight.
Steam's algorithm attempts to cater to people with games that have closer release date. Things listed as "Coming Soon", are the exception to that. By putting this game at such a massive delay, the game is deep into the abyss. I only found it doomscrolling through all upcoming games until I hit here, rock bottom.
Pushing the game so far out means fewer and fewer people will be recommended a project that likely will never come out, or be interested in following until a closer date.
Sorry for necroing, just my sleep deprived thoughts on this meme of a release date.