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They didn't, at least not directly.
They just didn't get back to the developer, or so it was reported back then.

For all we know at this point, they could have just as well finally reached out to the developer in the meantime, to secure a release. Which still hasn't even been properly dated and is still set to "2255".
People are saying Esse Proxy got rejected:
Apparently, GOG has turned down Summer Daze: Tilly's Tale, a spinoff of Hero-U: Rogue to Redemption, by Quest for Glory creators,
using their standard "too niche" reasoning.

We just got some bad news that will affect backers expecting to get Tilly's Tale on At least for now, they feel it's too much of a niche game for their site.