The actual reason: She sucks. She's just not a very good streamer, not particularly funny, talks in an annoying voice. Like literally, she puts on a voice when vtubing and it's more grating than her normal voice that she uses when doing regular streams. As for why she got popular in the first place it's unironically that future of vtubing shit. Her tech is incredible and employs the use of a mocap suit that costs 5 digits. She's a developer and was able to take fantastic advantage of this and if you want my personal rrat I think that braininess is a big component of why she's not a particularly good streamer. Her brain is more hardwired for nerdy shit, coding, hard numbers, etc and not creativity or a sense of humor. She'd get a nice spike in views every time she debuted something new on the tech front because it was always impressive, but once the novelty of the tech wore off she'd bleed viewers.
tl;dr She would have done better if she teamed up with someone who handled streaming, while she handled tech. Normies aren't filtered by her design and drove her success in the first place.