It's not my understanding. More the case of existing rugby not wanting a new presence there now, and that being reflected in the NSW (and, thence, RA) position. Should that be the case, then I can understand such motivation - even while slamming it.
Whether they've overseen a retraction of rugby teams based in Western Sydney is by the by. But if RA/NSW aren't approving a bid for RR, it seems a stretch to now claim they're supportive of it there. Well, not much in a material way.
Wait, … RA backed it to the hilt, but unfortunately the independent patrons were shy on the wherewithal. It just couldn't work! … seems to be what you're hinting at.
OK, my information is not first hand; I may have been told wrong (or the situation has since changed). Let's see.
Could be there's no moves happening. Or no point airing any that might be.
To be fair and frank, not much new can be announced while RA are on the hop for what's happening at Sanzaar and WR (World Rugby) level.