It's not dead dead, but no new projects are choosing it. Those that chose Scala as the better Java can now just use the better Java from the latest JDK.
Lots, but it's Pareto principle all over again. Those who wanted a sweeter Java were the majority of users. They have no real reason to switch to Scala 3 when Java 25 has 20% of Scala features that provide 80% of the benefits.
The issue for me is that Scala design lacks focus. They say yes to too many features.