I don't know what transpired between BLOKS and
Specialized. Certainly the whole development of the Vado and the Como was built around the BLOKS control logic, displays, and relevant firmware. I could surmise that BLOKS kept slipping development schedules and was giving Specialized "just around the corner" kinds of answers as schedules slipped. In my experience, these kinds of high risk business relationships between large companies and startups keep stretching out until everything finally blows up. Keep in mind that both BLOKS and GoSwissDrive (the creator of the core original Turbo technology) both have disappeared in the last year.
There is consolidation in the e-bike technology going on. To make a bike, you need motor, battery, and control technology. The large manufacturers like Specialized, Trek, etc. do not create this underlying technology but mostly repackage stuff they get from others. The volume developers are Bosch, Yamaha, Shimano, and to a lesser extent Brose (who makes motors but not all of the other parts). Specialized has tried to "add-value" by modifying technology and integrating their own proprietary components (Integrate GoSwissDrive firmware and control functions in the Turbo batteries. Add Mission Control), add Specialized specific firmware and batteries to Brose motors in Levo. When they tried to integrate BLOKS with Brose and their own batteries in Vado/Como, it was a "bridge too far" and the high-risks were realized.