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Monolith on DE, it's planned since 2017 and was green lit when XBC2 did well, development has been since Torna went gold their new game is confirmed to have been in development for just as long which means its likely further along than expected. Monolith have 3 studios with the primary studio split into 3 teams with one working on DE, one on the new game and the third assisting both, one of the other studios is helping with BOTW's sequel while the third assists in other first party projects like AC.

https://nintendoeverything.com/xenoblade-chronicles-definitive-edition-planning-started-at-the-end-of-2017-was-in-the-works-alongside-torna-and-new-project/