Saw a Tiktok by a creator who allegedly has "sources" at Netflix but it's a very credible theory even if it's just speculation. Netflix basically offered H&M the massive deal because they wanted access to the Royal Family. They are experts in entertainment and knew that getting exclusive content on the RF is the ultimate jackpot. Nobody actually gives a shit about their other projects and it's all smoke and mirrors to make H&M think they're the next Obamas.
Netflix probably even took into account that Prince Philipp and the Queen may well pass away sometime during the 5 years of Harry & Meghan's contract which means that there would be huge historical events like funerals and a coronation. Even though they "left" the RF, it's clear that one or both would still be obliged to go and Netflix could be the fly on the wall. Maybe they banked on the fact that H&M would travel to the UK with their children so the Queen could meet them or spend time with their cousins. They were envisioning an old money version of the Kardashians which would, of course, be worth every penny of the 120M deal.
However they didn't foresee the pandemic which greatly restricted travel and group gatherings (PP's funeral). The RF probably suspected what Harry was up to and did everything they could to grant him zero access to family members on his brief trips to the UK. Meghan and the kids weren't part of it at all. Netflix execs also didn't plan for the recession, Ukraine war and overall hit on the entertainment industry within such a few years. It's clear H&M will never deliver the content they promised and the prospect of them reconciling or travelling back to the UK before 2025 are effectively zero. The coronation has come and went and Netflix never got the "scoop" they hoped for with any of those major events.
They are reluctant to terminate the contract as there are various grey areas that could lead to a counter lawsuit from H&M (who are obviously very happy to sue anyone who crosses them). What they're doing instead is withholding the remaining 60M and just sitting it out. They are basically pressuring H&M to come up with more content as agreed upon but simultaneously rejecting all their ideas. This leads to a stalemate that will run into 2025 whereupon their contract will not be renewed.
The greatest proof of this is that there doesn't seem to be any more projects in the pipeline. No trailers, no marketing, no hype. The Invictus documentary is the last thing they will put out with Netflix and everyone knows it's too niche to be remotely interesting or globally successful. The spate of bad press surrounding how bad their ideas are is the final nail in the coffin. Considering that both are busy with other things all the time, Meghan chasing after two small kids, Harry rumoured to have been hospitalised from stress and generally not looking in great health, there are slim chances that Netflix will get whatever they paid for.