I think these rumors are making the rounds because of the LC being withdrawn from the Nurburgring 24 hour race this year. The LC was going to be in it with the new TTV8 but Covid hysteria hit and shut everything down so they had no chance to develop it. So the reason for the withdraw of racing it is the covid and lack of testing. They also said that they would race it next year. The engine is already running in the car so why cancel it? These rumors make no sense at all to me. I think it's stemming from the lack of racing the new engined LC this year at the 'Ring.
Pandemic hasn't stopped Toyota from racing Supra GT4.