That's what I've heard too! Tbh I'm still not 100% convinced it's gonna be rethemed to pirates and mermaids and there wasn't just a mixup with the new show... this would be the first park in the chain to not have any Sesame Street stuff. It makes sense from the perspective that they want families to buy tickets to Sesame Place, but I think it also shouldn't be downplayed how big of a draw that IP is with little kids for SWSD, regardless of how comparatively lackluster the Bay of Play is.
In any event, the play area really did need an upgrade so I'm glad it's getting one!
The other thing I've heard is upgrades to Orca Encounter, which would explain why they recently installed new signs and even some orca sculptures for it. I'm kinda hoping they don't change the natural-looking show set though, it's definitely an upgrade over the stripped-down look they've gone with on the dolphin stadium or the recycled One Ocean/Believe set still being used in Orlando and San Antonio.