If you want a bite sized glimpse in to Fauna’s mindset for why she’s likely graduating, I recommend you watch the beginning part of her ENreco pt1 stream.
https://www.youtube.com/watch?v=VrLNA0SjYN8Fauna is clearly a pretty neurotic and anxious person. Not even saying that as a bad thing, but it’s who she is, and I think it’s why she and management were incompatible. From Fauna’s own descriptions of management, they seem to be very lackadaisical in their approach to things, while Fauna is an analytical deliberate person that likes to know the exact when, where, and what for things. I think she felt particularly burnt by management’s handling of her 3D live where they basically told her “don’t worry about it, just trust me bro” and felt betrayed for putting her trust in them to handle things when they didn’t. From that point on, their relationship likely kept deteriorating until she finally decided to leave.
My conclusion is, Cover simply hasn’t been equipped on how to properly work with neurotic high-functioning menharas, only the kind of menharas than can be soothed by taking them out for a drink and karaoke and telling them everything will be okay. As for Fauna, she’ll probably do just fine as an indie as she’s a unique case, and hopefully Cover can learn from this experience of how to better handle talents like this in the future.