It was the proximity to Moana ONE! No one wanted a (live-action, bad) remake of a (good, well-liked) 10 year old movie.
Disney president on why the live-action 'Moana' failed at the box office
“It’s so competitive right now ... [and] I think it was hurt by the proximity of the animated ‘Moana 2"
Production budget — $250M
Marketing budget — ~$120M
Final box office — ~$323M
It's projected to lose the studio over $100M