I feel like Dlala probably knew they needed to step it up after seeing their E3 2019 trailer get twice as many dislikes as likes, especially after 2 other old-school beat 'em up franchises were successfully rebooted since Battletoads' last E3 showing, Streets of Rage and Kunio-kun (River City Girls). They delayed the game from 2019 to 2020 for a reason, and corona didn't affect game development until March. They could have shown the game at XO19 in November or the May Xbox show, but didn't, which may mean that they couldn't show it yet because they were in the process of changing the art design and had nothing to show as a result. Hopefully that is the case at least. Game was rated in some countries soon, which does suggest that release is fairly soon.
I still doubt that's the case. Just because I was proven wrong about the Sonic movie doesn't mean I'll be proven wrong about the new BattleToads.