The usage stats on GitHub are declining, for example. Devs are choosing Kotlin, Rust, and Go over Scala.
IMHO there are a bunch of reasons
* Scala 3 was a Python 3-esque disruptive event
* Perception as an overly-complex kitchen-sink inclusive language
* Kotlin took up the "better Java" mantle
* Rust became attractive to devs not committed to the JVM
* Go became less sucky
* SBT is disliked and Metals was buggy and unstable (and still slow)
* Suffers from the "we won't be able to find devs" problem where Kotlin, Rust and Go don't
* A bunch of community drama drove some devs away to Rust
I say this as someone using Scala 3 with ZIO effects system and Mill build tool and thinks it is fantastic.