No, Sonic Mania 2 Wasn't Cancelled Because of Bad Blood Between SEGA and Evening Star - Games - Sonic Stadium

SEGA and Evening Star have smashed long-standing rumours that there is "bad blood" between the two companies, and that this resulted in a potential 'Sonic Mania 2' project from moving forward into development. In a fresh interview with GameInformer, Sonic Team's Takashi Iizuka and Evening Star's

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TSS REVIEW: Sonic Mania - Reviews - Sonic Stadium

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Sonic Mania 2 Wasn't Made Because Sega Wants To Move Away From 2D

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Sonic Mania's sequel was never developed due to Sega's concerns over the size of its audience

GameInformer: Why Didn't Sonic Mania 2 Happen? : r/Games

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Rumor - Sonic Mania 2 Is Said to Have Been Scrapped Internally at Sega

Sonic Mania 2 never happened because Sega says 2D graphics don't sell : r/gamingnews