It seemed to me that the XD team was always quite small. I found it interesting that Adobe never put that much resources into UI design. Maybe the market isn’t very profitable. You would think it would be huge because so many companies need to design UIs.
Probably a business model issue. Since the software is sub-par, and they were late to the party, they are forced to give it for free to even be considered.
I also suspect XD don't bring many synergies with other Adobe products like Illustrator does.
Given this, it might be difficult to justify a proper budget to compete with the market leaders