There was a large scandal when he was accused of dating multiple girls that were fans at the same time, gaslit them and used them as sugar mommies, getting them to buy him things. Within those accusations were also allegations of sexual coercion.
There’s also an additional component where he was allegedly shit talking other members as useless and one member (presumeably Winwin) for stealing gigs for him. A less serious issue but one the company wouldn’t have liked since they were intensely promoting the
“happy family” through custom merch and stuff.
He posted an official apology and went on hiatus. During that time his fans did their own investigations and argue that they can provide evidence the allegations are false (conflicting timelines, receipts, etc.) Additionally, c-entertainment is apparently quite cutthroat and so the allegations coming as he was blowing up could have come from someone aiming to cut him down, they argue.
SM is certainly known to put people in the dungeon to let things cool off, then start testing the waters on bringing them back.
They haven’t done this here, which suggests there may be some smoke to the fire IMO to keep a potentially lucrative member on ice for so long.
The greater concern I think is that while international fans have been very loud about his return (lumis were all over all the WayV comeback posts on social) , the attitude towards the scandal is different in China and Korea, who still feel strongly against him (this is what I see on weishen twt since there is a large split in the Wayzenni fandom on this.)
The company is seeing something here that we are not where they don’t believe the risk is worth the return. And SM will not want to damage the overall NCT brand when it is so successful and lucrative for them atp.
SM can be pretty lazy at times so the fact they went through and specifically physically edited him out of old materials says they are doubling down on this. WayV just had the most successful release of their career so again, no reason to bring him back in atp.