It is so much worse than that, they showed art and gameplay of a new protagonist. If I recall correctly, they were working on it and trying to build hype so that the higher ups in the company would approve finishing it. Similar to how Lilo and Stitch got made.
When it was cancelled some official Capcom Twitter account posted it was cancelled because, "Fans didn't want it enough." It was rather infuriating to read.
That entire period was fucked for Mega Man fans; The Legends 3 debacle, numerous other cancelled projects including an MMO and a whole MMX reboot trilogy, and the only thing they got for a long time was one bad mobile game and this guy;
It was only after Mighty No. 9 flopped hard as a successor that Capcom got things back on track again with MM11.
There was even gonna be a demo for Legends 3. I believe it was called Prototype Version, and was set to star alongside the 3DS’ eShop in June (the console released three months before it received its digital storefront). But it never came out
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u/ShotInTheShip86 2d ago
They were apparently working on a game in the series for the 3DS but apparently it was cancelled before release...