The Eurogamer article points out how Lionhead were shutdown because they were about to start making Fable 4, a single player game after finishing up Fable Legends, a F2P game MS leadership had forced upon them.
It's no surprise that Arkhane wanting to go back to Dishonored or Prey and Tango wanting to make another single player is what broke the camel's back. MS doesnt want their developers to make those games. They are always chasing the next billion dollar franchise. it's why they bought bethesda and activision.