I watched the first three episodes of THE ACOLYTE, but I didn’t continue, so I can’t speak to the quality of the show. But from a business perspective ONLY, I can infer that Disney and Lucasfilm simply didn’t see much of a point in putting more money into a big budget bet that hadn’t really paid off in the end.
Viewership was extremely low. Lower than for any other Star Wars TV franchise. And the budget for The Acolyte was extremely high. So a season two was not financially in the cards. Of course, TV shows used to be allowed to grow and develop in the past, but in the streaming era, when the budgets are so bloated and the competition so fierce, you either have a big hit on your first try or you’re out. Look at WILLOW. And I say that metaphorically because the series is nowhere to be found.