The dev is fine as far as I'm aware. They hosted the Dying MMO Jam and are currently hosting the Film Festival vol. 1 Jam. I'm not sure if they're still working on Agony of a Dying MMO as there haven't been any clear updates. They post what seems to be work on other games that share the same styling, perhaps this is a purposeful obfuscation but no one can be sure for certain. The fact she hosted the prior jam could mean that it's still happening but with the lack of clear updates it hard to tell.
I took it on faith when others said it was canceled and along with the lack of updates I assumed that the game had been postponed indefinably. I apologize if I fed into any unfounded rumors if it turns out it's still in development... and for the multiple spelling errors in the og post