The story came out a few months after she signed on to WME, that they signed her on because Serena Williams "begged" Ari Emmanuel to take Markle on and get Markle "off her back". If that truly happened, then WME wasn't taking Markle on because she was/is a true money making talent. It may have been a grudging favor. Right they sign her on, the car chase hoax happens. WME could not have okayed that plot in advance, their reputation would be on the line.
I think WME dropped Markle, but I don't see why they would still work with Archewell, Archewell equals Meghan Markle and no one is touching it. As far as getting any of their money out of Markle is a lost cause and perhaps they just ate the losses in order to get rid of her. I'm sure she wasn't paying their bills, either. Netflix may have to eat big losses also if they dump the Harkles, but it would be to get rid of them.