There was a studio working on a Sims competitor and their game got cancelled earlier in the year.
Did you mean The Sims? May have been “Life by You”, published by the same people who made Cities Skylines. They even had the lead designer for The Sims 2 on the team too, so it would have had a pretty good chance of being a faithful interpretation without all the excessive DLC.
No idea why it got cancelled though
The stated reason was that the games development was not proceeding at a pace that gave the publisher confidence in it. It’s not too surprising after several delays and rather rough looking gameplay material shown in the ramp up to early access.