On the one hand, 'we don't want to release it because it's so bad it would tarnish the DC brand', on the other hand 'the movie is fine but doesn't fit in our general strategy anymore, releasing it on streaming won't get us much direct income and actually we can recoup more money than that with cheap accounting tricks if we don't release it at all'.

So I'd guess the truth is somewhere inbetween - the newly replaced big boss has zero interest in the project, weak test audience reception is suggesting the movie should be improved with some reshoots before release but he refuses to spend a penny more on it, and considering its meh quality, the limited gains of releasing it as is on streaming are outweighed by the tax write-offs if they refuse to release it at all.

Or maybe they're hoping to generate enough media attention that next week they can cave in, say 'fine, we'll release it on streaming after all' and then get way more views than if they hadn't done this whole song and dance...