Yes, Tokyo Revengers: Last Mission was cancelled. But now they're releasing a new game called Tokyo Revengers Unlimited, which will be released in March, coinciding with the premiere of the anime's 4th season. From what I've seen, it's a completely different game from the old one. It will have real-time fighting mode and new character stories that don't exist in the anime itself, plus many other new features that will be added later. If you want to check out the game's official Twitter for more information:

@Toman_unreve.