Third, failure in networking. The girls never made any important connections or collabs, and the few times they had popout collabs they never followed through. The only constant connection they had was maybe Nami with her Niji friends but nowadays being friends with Niji is a debuff. Near the end they realized this and tried going for more networking but it backfired on them due to unicorns. A few months ago there was going to be a vtuber GTA RP server and Mint was supposed to take part in it. Now the issue is that males would also be present. The Kawaii girls knew their unicorns wouldn't be happy but decided that getting even an inch closer to Mint would be better than nothing, only that Mint cancelled last minute so now the girls had publicly shown they would throw their unicorns away. There was some backlash, enough that people like Shee were doomposting on twitter from the hate they were getting.
And of course we can't forget about gen 3. Gen 3 was lightning in a bottle for Kawaii, finally they had more talents than just Nene earning money for the company. If management had listened to the girls and let them do their own thing I'm sure Kawaii would have survived. It's easy to see how much money they lost looking at the quality drop in models with their Gen 3.5