The event is likely "on hold" due to the pandemic, not ratings or anything "inside the station". If I were managing a station in CA today, and given the on-again-off-again changes in the way the state has managed the situation, I would not schedule an event until I saw at least 6 months of stability.
And, after seeing the sad and horrible results of a concert in Houston on Friday, I would be afraid of any mass gathering. Just as behaviour on airplanes has disintegrated over the last 18 months, it appears that people in large groups are exhibiting different and deteriorated behaviour patterns that make mass events frightening.
In any case, back to KROQ what we have is a station that is looking for a new identity as what it had for the last 5 years at least was mostly the morning show and not the music. The show disintegrated and left them with no strong music position as that had been skillfully taken by their direct competitor.