Primarily, it seems to be a lack of compatibility between the legal positions of the two parties, in other words, a lack of "hope for prospect" of a settlement. At least on a legal level – a mediator or judge could still suggest a settlement.
Yes, but perhaps a new settlement with more realistic positions (full purchase price payment, waiver of default penalty in return for immediate resumption of construction and defect rectification) could quickly aim for a settlement, because otherwise a settlement will only be proposed in court in October, and it will take further months until that is resolved. With a new winter break.
I see it like this: Either stay firm, but then give possession in spring 2021 rather than give in, for possession at the beginning of 2020. One saves a lot of rent, provision costs, legal costs and nerves. The price would be "only" one's own pride and the desire for revenge, which we hopefully have been able to mitigate.