Coco is leading a mutiny against Cover. YAGOO and the rest of upper management are fully aware of it, as she makes no effort to hide it, but since she hasn't actually broken any terms of her contract, he can't fire her.
She's planning to be the head of another Vtuber group with a bunch of other Hololives (and Holostars, as well as a couple others that aren't affiliated with Cover) once their contracts with Cover expire.
Currently, Haachama, Suisei, Miko, Choco, Pekora, Rushia, Marine, Mel, Towa, Lamy, Nene, Polka, Gura, Amelia, Astel and Roberu are all working together with Coco and planning their eventual exit. Aloe is also on board. That isn't to say that some of the others aren't considering it, but these are the ones actively planning to leave at the moment.
A whole bunch of them are severely pissed at Cover, not just because of these new rules, but because a lot of other shit that's been going on behind the scenes for a while.
YAGOO is currently shitting himself, by the way, since all of this is known. Almost everyone has been pretty open about their intent to graduate once their contract is up. There's also a number of Cover staff that are planning their exit alongside the talent as well.
By this time next year, Hololive is pretty much going to be dead.