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Ethyria was the first obvious red flag. Outside of maybe Nina, everyone else felt severely miscast for the characters. Enna sounded less like a heavenly songbird and more like squidward, Reimu despite being a feisty latina was given a gloomy model meant more for kuuderes, and besides the fact that Millie hated being given a loli-ish model with no boobs, her voice just sounded a lot older than her character model. It really was the turning point that made you wonder if Anycolor started caring about subcounts instead of whether they were right for the role, or if Elira well and truly nepotism'd them into the company. Millie and Enna didn't even try to play some kind of kayfabe either, they flat out admitted that they knew Elira prior to joining NijiEN.
The other warning sign was how heavy Luxiem was prioritized compared to the other waves. Their "6 month anniversary" overlapping Lazulight's 1 year anniversary was the biggest red flag, considering they had an original song handed to them while Pomu probably had to fund that VTA cover and that air balloon trip to space from her own pockets. And Nijisanji's "Puchisanji" shorts never came for the whole branch, instead it was just "PuchiLuxiem" and was only reserved for The Luxiem Channel.