I do know there was talk about animation previously on the Universal lot but I think due to how long it takes to create an animated movie vs live action they will rather go live action. Additionally Universal's two animation studios already are jammed pack with projects. However here is an interesting storyboard.
Additionally if they decide to add in some more adult parts to the book to the film (two new songs are being added) then animation will not be the way to go.
Lastly, the director of this film created/produced/directed Billy Elliot the musical for Universal, won a tony for his direction, got Emmys for the Netflix series Crown, and has a list of Oscar Nominations for best picture and best director. This film is in very capable hands as all the team in charge of making the musical is making this movie.