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Turkish said:
It was just never clear what MS wanted to do with this, the reveal showed the game being controlled with Kinect https://www.youtube.com/watch?v=m37sVEgJrOA

It wasn't a passion project. Ori and Cuphead, those are passion projects.

That's because Ori and Cuphead were projects acquired by MS in their early stages. They already had a vision before getting MS backing. Project Spark never felt like that. Plus people didn't seem take to the game creation tools as naturally as they should have.  It was a curve that kept people from going all in on it. MS's interest in it likely waned once they bought Mojang.