What's your basis that the LN got axed, source?
So far the LN hasn't published a new volume since 2021, but the same could be said for other LN I follow like sponger life, skeleton knight, demon lord retry and others I can't remember but haven't had a new volume published since 2020-2021 despite none of them being finished or announced as cancelled/axed. In fact, for skeleton knight there was a 3 year gap between vol. 9 (2019) and vol. 10(2022) with seven seas listing vol. 11 for next year despite no info from the jp publisher on vol. 11. And demon lord retry finally got its 9th volume published in japan on sept 29th, 2 years after vol 8 in 2021.
The author of Goshujin is also the author of the reincarnated as a space mercenary of which the WN, manga and LN are very active currently.
I can only see it as either a focus shift from the author or workflow of it and the other mentioned LNs being affected by the pandemic.
Is your basis the long time gap without a new vol? unless you give a clear source that announced the LN was axed, we can still wait till it's published like the former LN examples I gave.
Not really sure, but there was apparently some Tweet Translation Image from somewhere which mentioned that the Author of Goshujin is currently burnout with the Series and had axed the Series. Not sure what's the source of that was or how accurate it was (the translation seemed MTL based).
Also, the Web Novel of this Series had an abrupt end. So, the signs are not really that good.
But then again, the Manga is still getting stable release even now, and is covering the end plot of LN Vol.2.
So, nothing can be said for sure.
Though the chances is low, but there is a somewhat strong hatred or negative opinion towards Furries or Semi-Furries in the Western market. So, maybe the Author is worried because of it and holding the story on hiatus for now.
On the mention of "Reborn as a Space Mercenary", there was i think a rumor of it getting an Anime adaptation, though it had been quite a while since i heard it. But maybe that's why the Author is more focused on that one than on Goshujin, as he wants to do work on a series which is more marketable.
As for Skeleton Knight, the Author had previously mentioned that he had almost given up on the story around LN Vol.8 because of poor sales (though this isn't mentioned in the Afterword of any volume), but still he released until LN Vol.10 because of promoting the Anime (he initially planned to only release Vol.9 as a Epilogue with an Open End story).
As for the Seven Seas listing of LN Vol.11 for Skeleton Knight, it is a really odd one. There is no info of a Japanese release of Vol.11 yet (atleast until December 2023 release schedule), so how are they going to release a volume in English when there is no Japanese release yet.
But then again now that i think, they did something similar with the release dates for Arifureta final volumes as well.