Sorry for the lack of news.
This is probably one of the hardest games to colorize, I can figure why no one tried to do it previously. My approach reached a bottle neck and had to rewrite the entire code during the last six months. I don't really want to know how many thousands of hours I've spent already on this.
There has been progress, but it's everything internal, that's why I haven't posted any screenshots (if you look carefully, the latest Stardroid screenshots I posted had a weird HUD, that was in the midle of the rewriting process). As of now, I'm close to have the hack running again over the new colorization engine and showing up the same results as last year.
However, there won't be news coming soon sadly. I've paused all my colorization hacks for now (which includes Mole Mania, by the way, just in case you weren't in the know).
There is a big obstacle when colorizing DMG games which is the lack of tools. I'm currently working on a tool that will be very helpful and hopefully shorten colorization development times.
In other words. Yes, this is still been working on, but still needs more work on development tools before resuming the hacking process. And yes, there are hopes for a 2022 release.