The running theory from some of the channels I watch that have people with children, their operating theory is there is a soft boycott of Disney. Not one that is loud and in the open like what happened with Budweiser, but one that still exist. Even just on the grounds of "Well, we cant trust Disney anymore. So lets not go see it until we know what it is."

Additionally, there is an issue where Disney seems to have trained their own customer base to want to wait until their movies are on Disney+ to go see it, due to there being some signs they do well on streaming. But there are two additional problems for Disney with that one, being 1) Disney+ is still massively in the hole and losing a ton of money, so any movie people are watching on there isnt actually helping them, and 2) with the exception of Encanto (which failed in theaters, did well on D+, and has had strong merch sales) , the merch isnt selling either. So they dont get any income from the long side either.