Having looked at the unboxing video above, I would have expected that the reason it was scrapped was due to the poor quality of the item. Every time the mechanisms operated to move the turret, there were little panels popping off, which I assume was not supposed to happen. Rather than have to quality check every single one of them, which were likely all over the world by this point, it was easier for WB to just call for the edition to be scrapped.
I don’t know how true the paint thing is, but Project Triforce manufactured many different figures and collectibles and I can’t imagine that their paint product would be any different to that of other collectibles, so doesn’t make sense for just this edition to be scrapped because of the paint. However, this is just speculation and assumption. What the hell would I know!?