Update: Robertson has further detailed the possible KOTOR game, saying that he heard wrong and that it might have become another game altogether or "fizzled out." Here's his explanation to Kotaku:
"Going to hold my hands up here – I think I just misheard some of the Austin stuff when I was talking on Skype, so I may have misspoke there. There’s also the element that I had no notes in front of me and just sort of rambled on from memory. I did not expect these few select statements to blow up (oops). I’m used to having the opportunity to just release follow-up notices on the Patreon with any updates and corrections. My bad there.
"Let me clarify that I don’t think KOTOR’s a current project. From the same people I learned about Dylan from, I did hear that they prototyped a KOTOR revival at Austin a while back. I believe it may have evolved into something else since then or fizzled out since then. I’m still confident Austin is doing something Star Wars related though and I’m confident in that. I actually did know that they were contributing towards Dylan since I originally found out about it when I was researching Austin’s Shadow Realms, so if I said exclusively, then that was admittedly a mistake."
We have seen fan remakes of Star Wars: Knights of the Old Republic, but no official game like it from BioWare (omitting the MMO). It looks like we could finally be getting a KOTOR-esque game from BioWare, though nothing is confirmed.
During a podcast (via SWGameOutpost, via StarWars News Net), games journalist Liam Robertson stated that BioWare Austin is working on a "remake/revival" of the popular Star Wars franchise, Knights of the Old Republic (emphasis by author):
“I’ve learned now that [BioWare Austin is] pretty much now exclusively working on Star Wars games and they’re going to be doing that for the indefinite future.
“What they’re currently working on right now—and I have this on good authority—is a sort of remake/revival of Knights of the Old Republic. I don’t know when this is set to come out, but it has been in development for a little while now. I don’t really know how that game’ll end up. I’ve heard that it isn’t exactly a remake anymore, but it started as a remake/revival. Now it’s kind of going from that blueprint in sort of its own original thing. I guess we’ll see what that turns out to be, but they are prototyping it right now.”
Robertson has a history of having concrete sources when it comes to game rumors, but there's also something else that helps support this rumor.
Back in 2015, we saw Drew Karpyshyn, the writer behind the original Mass Effect game, its sequel, Knights of the Old Republic and Star Wars: The Old Republic returned to BioWare to work on Star Wars: The Old Republic – at least that's what he detailed in his original blog post.
Last month, however, Karpyshyn confirmed that he is working on a new game, but couldn't detail anything beyond that.