2019's live-action Aladdin allowed audiences to be transported to Agrabah in a whole new way and left audiences excited for Aladdin 2, but it hasn't happened yet. Disney has shown that part of their ever-evolving content strategy is to reboot their familiar animated franchises in live-action form. They've given this treatment to movies like Cinderella, Beauty and the Beast, Mulan, and The Little Mermaid, all with varying degrees of success. It is much rarer for one of these live-action remakes to start a new franchise, but that looked to be the case with Aladdin.

https://screenrant.com/why-live-action-aladdin-2-was-canceled/