While the game appears to be on life support it isn’t quite dead, as
in a recent statement to Axios, Disney's head of gaming Sean Shoptaw said “Not a lot I can say on that point for some hopefully obvious reasons, but KOTOR is obviously an incredibly popular game, one that we are incredibly proud of and think that there's still a lot of demand for.”
Shoptaw continued, “Can't say whether the remake will ever actually come out, but yes, two people from Saber Interactive tell me they're still on it, despite recent rumors that nobody is working on the game.”
Remaking a game such as KOTOR is a rather ambitious affair, and so it would not be surprising to see it ultimately peter out – but for the sake of the fans, hopefully whoever is still working on it manages to pull through.