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Dana released a statement that it wasn't because of the gay stuff since that was always a thing that was going to happen. they said it was because the crew wanted to make a serialized show rather than episodic, which was an issue at the time since disney+ wasn't a thing until season 2. Plus the age of viewers who frequented the show where older than the target disney demographic. all in all the show was ahead of the curve of it's time. if it had been pitched/released on disney+ first instead of disney channel, then it would've been more popular and not have been cut/canceled
episodic meant that viewers could drop into the show where ever and not have an issue following along or enjoying the show. Dana didn't want to make a children's show to begin with anyway which is why the show seems so mature. she originally pitched the show to be for teens/preteens but disney channel (which is where the show originally started airing/was meant to air on) is for that 12 or younger crowd while disney XD is meant for that 12 to 16 crowd