Perhaps one of the reasons was simply cost-cutting due to this lower priority and the new Kermit is simply cheaper than the old Kermit.
On the other hand, it isn’t even entirely clear here that the decision had anything at all to do with Whitmore’s performance.
The Muppets haven’t been a major concern of Disney since their last attempt at a TV series went down.
Without knowing what these reasons were it’s impossible to really judge what happened here.
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