I still think it's directly related to the 2024 Summer Olympics going to Paris instead of Los Angeles. Universal has worked and continues to work very closely with the city of Los Angeles when it comes to tourism. As part of their bid, the Universal Studios Lot would host the International Broadcast Center as well, a huge get for Universal. SNW was likely planned to open some time in 2023 or early 2024, occupying the area just north-east of the Lower Lot, taking over the soundstages between The Mummy and Transformers. This would have been a huge, Potter-level grand opening just before one of the largest tourism events Los Angeles has seen in 50 years. When the 2028 Olympics were granted to Los Angeles instead, it shifted the time line. Still want to do Pets, still want to do SNW, but it might be better to save the huge space originally assigned to SNW for something else that can be opened closer to the Olympics. So Pets gets shuffled to the Upper Lot, SNW gets crammed into the former Pets space, and the sound stages remain standing. For now.