I think they were already sketching up ideas for a sequel when the whole fight about ownership of the studio and intellectual property escalated. I would think either party will wait for a resolution to who actually legally owns what before continuing work on a potential sequel. If DE2 ever happens, it will probably take a while - and it might well end up like all good critiques of capital; wholly recuperated and swallowed up by capital, melted down for parts and sloppified for easier consumption.
Unrelated but I'm a Virgo is amazing and I highly recommend it to anyone reading the thread, the first season has only like 8 30 minute episodes. If you have patience for something that's a little bit surreal and unique you will definitely enjoy.
the people who did most of the writing aren't on the team anymore (cf pending lawsuit over ownership of ZA/UM) so there's a 0% chance it's not revisionist garbage.
If people want more "real" DE content, finding an English translation of Sacred and Terrible Air is gonna be the only real option for a loooong time maybe ever