I don’t know anything about the production of that movie, but taking episodes of a canceled TV series and making them into a crappy sequel movie has definitely happened before (see Disney’s Atlantis 2, which was literally just the first three episodes of the scrapped TV series squished together into an incoherent hour and a half montage)
It sounds like they literally can’t refund people because the company completely ran out of money and is gonna be liquidated. Sucky situation for all parties involved.