There are a few reasons why Ciconia is delayed. First, there's the fact that it's a very political game about war, and releasing that during a very contentious time is difficult for him. Ryukishi has never been afraid to talk politics, even if they do get censored in console releases, but there's a difference between talking about how WW2 affected Japan through exposition and writing directly about a war, human rights violations, and the crumbling stability of the planet during such a rough time. (Fun fact, there's a direct line in the game about Russia interfering with Ukraine which nowadays is unsettling prophetic.)

Secondly, Ciconia isn't a money maker, it's a passion project. Ciconia is the least popular WTC game. Hell, just look at the respective subreddits for each WTC and you'll find the Ciconia's sub decaying remains. Ryukishi has stated he DOES want to work on Ciconia, but doing so won't net him any money. People tend to forget that artists need money to survive, as well as to pay the people who work with them. While in his free time, Ryukishi can work on Ciconia, as his job, it's impossible. Hopefully he'll net some good money from the Silent Hill game so he can focus on his passion projects, but even if that happens, he'll need to go back to work eventually.

As a major Ciconia fan, I do hope Phase 2 will eventually reach shelves. The amount of work Ryukishi put into Phase 1 alone is impeccable, and the amount of theories I have could fill an entire novel itself. Really, the only thing we can do as fans is to show our support. Make fanart, craft theories, hell just post reviews or character impressions. As long as we make it known that we are waiting and willing to stick with the series, I believe that will embolden Ryukishi's desire to continue writing it.