If Chaosium is ever going to do a not RQ or Pendragon Fantasy RPG they need a reason to get behind it.
One based off of the successful CoC 7e is one of the few reasons to do so.
I think that there are two ways to go here:
First:
From this thread: https://basicroleplaying.org/topic/13532-why-magic-world-failed/
"Mankcam
I'm thinking of a setting like Dolemwood, WFRP's Old World, and The Witcher. I would prefer it a bit whimsical, fable-like, with dark woods, supernatural threats, kind of a dark Red Riding Hood kind of place. Full of evil child-eating hags, shadowy villains off the roads etc. Grimm Tales meets The Witcher sounds cool to me."
Have something that has a different take on things than typical high fantasy Forgotten Realms D&D. But is still a very relatable Fantasy setting.
The second would be a whole lotta pie in the sky...
Second: CoC7e is huge in Japan. Sword World is Japan's #1 Fantasy RPG.
Sword World powered by CoC7e!
How they could get that license, or if they would come to a deal with the Sword World guys - I have no Idea. Probably totally unviable.
But with a good English translation of the Lore, it would be a unique hook to get attention for the game stateside. (Japan's #1 Fantasy RPG setting brought to you by Chaosium!)
Either way, a Japanese translation should be made immediately available as possible for either version to leverage CoC7e's market leader position in that country.
But the truth is that both of those are highly unlikely because of the investment required to grab Fantasy RPG market share.
A CoC7e powered "Eldritch Fantasy" Rpg in the US would be effectively "competing" against D&D twice. 5e and PF2e.
It is not just enough to release a good game – it will need to be supported; I.e. Modules, Adventure Paths, the periodic “Tome of everything equivalent”, VTT support, oh and a setting that doesn’t suck to go with it all.
A minimum of four quality releases a year, every year. With production values equal to the big two to boot.
The cost of real competition is high.
A third way might be for Chaosium to team up with a trusted partner in Japan to make the game as part of leveraging their market position over there. That might be a way to spread the risk/cost to make it a more viable option. But I have no idea how that would work, and I am not privy to Chaosium financials; so this is all just hot air with other people's money.