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This is very disheartening to hear.
And I believe Nintendo can be a shitty company to work with for whatever reasons. After all it sometimes even is a shitty company to deal with if you are are a customer and fan. And there are voices and whispers that state Nintendo isnt all that nice to indies as it might appear with all that "greenwashing" they are doing considering their treatment of small developers.
I would have bought that game in blink of an eye. Having it portable would have been amazing. But hell theres not much to play on Switch now and the MK8 port doesnt set the world on fire for most because we all played it to death aready and Street Fighter 2 after that... man its as iconic as it is dusted.
I might just sell my Switch again and build a Rapsberry Pi Retro Machine.