The game is updating, just an artist dropped out of the project, the rest is done. They confirmed it on DA.
Viewing post in Demon Lord Alice (Chapter 2 Demo) comments
An artist has not dropped out of the project. The art has been taking a while since the artist is not solely focusing on the project and there is quite a bit of art that needs to be made, but they have not dropped out of the project.
Also, only up to Chapter 2 is currently done, with slight progress on Chapter 3. It's only Chapter 1 and 2 that is done, aside from the art.