As with almost everything these days, there is a story behind it, even if told to me many years ago.

Dragon contracts the figure box art and sculpting overseas; it is usually not in-house made. Issues and shipping damage arise using this process and that's all I'm going to say about that. It doesn't go as smoothly as everyone hoped. That was years ago so I don't know about now.

I do remember the big purges Shell. Their Gen2 figure sets were where the future of plastic figs was going, I had hoped. So, you think financial reasons and it makes sense. Dragon was offering basically a diorama in a box at the price of 1 resin figure. I know because I have half a dozen figure kits that "one day" will be the population of some dioramas I hope to do.
I also have a few of MiniArt and Master Box civilian sets to populate a post war dio based around the MiniArt Tram kit.

Master Box and MiniArt pretty much were the only figure producers left. It's so dire that Hobbyboss is now re-releasing the Tristar figure kits.

I have pretty much all of their German vehicles already and have no need for the recent multi-version reissues. However, I wish I had bought more of the figure sets while they were having all those constant huge sales a few years back. They were purging all their unsold inventory and a lot of it was figures; they just weren't selling enough to justify continuing production.

But you can still find plenty on ebay.

I agree Peter that Meng & Takom are producing not only better kits but the variety of uncommon vehicle types & interior kits too. And Tamiya, I thought those guys were dead but their new releases are excellent! Their figures are now worthy to stick in a hatch opening. The M3scout car those Russian figures are excellent !
So, will Dragon turn it around like Tamiya did or continue to milk their old molds, add a new sprue and call it a new release until they fade away? Stay tuned.....

Dragon has some strange marketing, their website looks/works like its 20yrs old.
They promote Star Wars kits for a year that they never do. Their Avengers figure kits are also impossible to get or cost a crazy amount. I think they must have money issues as they keep releasing old stuff in new boxes.
Here in Australia Dragon was everywhere now my 3 local shops have pretty much stopped stocking it, they only have kits left that no one wants.
Gone are the days where new Dragon kits with PE and metal barrels could be picked up in store for $40AUS ( I think I pick up the Tiger I for that price ) now in store they are $80-$110.
Now that Tamiya , Meng and Takom are pumping out better kits I think my Dragon days are over and I think a lot of others feel the same way.

"Black Label" says it all - more like a censorship bar!

Imagine a black label figure set....where is the poop emoji when you need one.

I think Dragon quit just about everything!

I think an aftermarket company is coming out with a pointing arm conversion set to make any figure into someone pointing.

I was just cleaning up some of Dragon's figures, the DAK Panzer & Artillery figs #6693, and got to thinking about how I haven't seen any new figures being released lately. Did they surrender to MiniArt that part of the market? The above figures are really nice with great detail. It would be a shame if they did. And if they did quit who's going to make pointing figures ???