Termination is a forcible dissolution of the contract by the agency due to a breach of its terms, which in most cases merits an immediate stop to any vtuber activities.Termination, techincally. She terminated the contract herself.
I don't believe a situation like Serafi's has ever been documented, mostly because the agency did not take any action for quite a while, but as of today's notice it could be called a termination if we ignore Serafi completely, I don't doubt similar cases have played out in other agencies, we just never get to see it. The company is usually the one who announces it and the reason is never such a blunt "the talent terminated the contract".
The difference between "termination" and "graduation" is simply the speed and general mood. Both terminate the contract, since the vtuber is no longer going to be working for the agency, but graduations are generally either in good terms or neutral, in a broader sense of Japanese culture a graduation doesn't affect the talent's reputation as much as a termination. Graduations can also take a while, like Coco's month long tour of victory or the goodbye streams other vtubers get.
A termination is sudden, takes effect immediately, freezes all of the vtuber's accounts and carries no positive feelings whatsoever.
Neither term is all inclusive, universally consistent or without exceptions.
Tl;Dr: I agree. Termination seems fitting, even if it isn't conventional by any means.
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