I'm gonna explain.

Yes.
This game is canceled. This build of the game and some story aspects won't be happening anymore. I've lost motivation to this game, and the progress was not going for about 4-5 months.

So, why is this game kinda cancelled?
While the standalone title won't be finished, it will be remade as one of the chapters in Infected Minds. The remade version will still have some aspects like this game, such as the in-game tasks, the year it takes place in, most of the story, etc.

So while this is not going to happen for a while until chapter 1 of Infected Minds is finished, be sure to follow the new upcoming fangame to see how all its progress is going. Stay tuned for more info!