In part 2 of Harada’s Bar radio which aired June 5 2021, Katsuhiro Harada revealed some news on the status of Tekken x Street fighter.
As it turns out, Tekken x Street Fighter was in fact cancelled and the cancellation came when the game was around 30% complete.
You can see a subtitled version of the airing below
https://www.youtube.com/watch?v=kRD5RVADauU