He retweeted the Cover apology for Holocaust along with a comment that he had had some reservations for a while and that this seems to have proven them right and he is going to keep his distance from now on. During the following months he slowly deleted all the Holo art he had drawn and at some point early this year unfollowed every one of them, including Suisei. The Holos, including Suisei, also unfollowed him. As all this happened piecemeal across six or seven months, although it was noticed, nobody really paid that much attention to it and assumed that it's just standard Japanese artist behaviour as they have a tendency to delete all their old stuff every once in a while.
He had already deleted most of his Holo stuff including official Suisei art by the time the orange leggings outfit was revealed, but since he, you know, made the new outfit, it wasn't really a cause to make any assumptions. That is, until January or thereabouts someone realized that there was no more Holo stuff, but he was still drawing Nijis and even then it took until the unfollowings and him not drawing anything for or reacting to Suisei's anniversary that anybody really took notice and even then it took a while before somebody cared enough to dig up the tweet about permissions.
Anyway, Suisei (and I think a couple of others?) followed him again some time this spring; it may have been only a few weeks and at most a couple of months that Suisei wasn't following him and she always linked him in her Twitter bio. The unfollowing was noticed around the time of the BL fiasco, but Mizuru Kei was shortly before that, so either or both may be related, but that's just pure speculation. At any rate he refollowed Suisei in August or September.
So in all likelihood Nari has some issues about Cover's (former?) attitude towards copyright-related issues, but as he was professional about it, there's not much to even speculate. Not that that has stopped a local schizo from occasionally sperging out about it.