Cardiff local news has information about plans for the Cardiff Bay branch from Queen Street.  As I read it, the implication is that the old idea about extending the branch a couple of hundred metres towards a new station at the bay have been dropped in favour of keeping a revamped existing one.  The intermediate new station looks confirmed though.
https://www.walesonline.co.uk/news/wales-news/plans-revealed-transform-cardiff-bay-24301679

 
I think it's more that this particular planning application refers to the existing part of the route.


I take this paragraph to mean the extension is still going ahead.

 

Yes, I spotted that too which suggests a further (3rd) stop after the (according to the article's illustration) revamped current old Brunel station terminus site......yet the article only speaks of the two stops.  There's also the issue that the line would need to cross a road immediately after the current terminus.
I do hope that you're right though.

 
I think the issue is that the article's based heavily on a specific planning application, and doesn't look too much at the bigger picture. I haven't looked into the geography of the plans at all, and haven't worked out how the route will get past the buildings – the picture suggests perhaps tapering towards Lloyd George Avenue, but I don't know how accurate the artist's impression is. With the train-trams running on-street for the extension, I assume the junction isn't too big an issue, presumably with some remodelling.   

 
Wales Online are reporting on revisions to the Cardiff Bay line and announcement of the commencement of construction preparatory work.
In short, there will be a new station at Butetown, a little North of the original Loudon Square proposed site and there will seemingly no longer be an extension past Cardiff Bay Station but the station itself will be upgraded with two platforms.
Article link below:
https://www.walesonline.co.uk/news/cardiff-suburb-getting-new-railway-24763645

 
It looks like work is about to start on the Cardiff Bay branch according to this article:

https://www.newcivilengineer.com/latest/work-to-begin-on-new-welsh-railway-station-11-01-2023/

There's quite a lot to do with electrification, a new station, line/signalling improvements, an upgraded Cardiff Bay station and (I think) a 2024 completion date.  Portishead line take note.
New tram trains too!

 
There's a bit more about the Bay Line in this Wales Online article which goes on to try and explain the broader picture in the capital of the Principality, especially the somewhat confusing relationship between Cardiff "Crossrail" and the Transport for Wales South Wales Metro.
I'm not sure if I'm less or more confused about it all after reading the article but it's a fair attempt at making some sense of it.

https://www.walesonline.co.uk/news/wales-news/everything-know-cardiffs-first-new-26031344?int_source=amp_continue_reading&int_medium=amp&int_campaign=continue_reading_button#amp-readmore-target

 
I had a look at the ongoing works along the Cardiff Bay Line on Wednesday.  Since my previous visit just a few months ago there's a very visible change along the line.
The photographs here show the transformation at Cardiff Bay station with the new platform and extra line visible.  Pictures taken from the end of the existing platform, the passenger shelter and from the road running parallel to the line.

 
In addition to the above post on the Cardiff Bay Line, here's a picture of the work done so far on the new intermediate station between the bay and Queen Street Station.  Again there's been a noticeable visible progress in just a short while.  Rather impressive so far I think.

 
With a change in leadership in Wales,maybe electrification could be on its way on the Cardiff to Swansea line

 

I saw the concrete pipe sections and wondered if they were components for Bristol’s anticipated rubber-tyred underground autonomous micro-pod rapidish transitish systemish… but I think they’re just drains.

 

Sometimes a drain is just a drain!

With apologies to Freud.

 

Possibly... although there is a fair bit of electrification already being carried out on the South Wales Metro.

 
Big changes being consulted on for the valley lines next summer.

All aberdare and merthyr services will loop clockwise or anticlockwise around the city centre via Radyr- Cathays -Central -Ninian Park-radyr and back up the valleys.

In addition all services from Rhymney  and Bargoed will run to Barry Island and Bridgend via VOG.

The Penarth branch will be served by a 2tph from Coryton abd a 2tph service to Caerphilly.

This gives 6tph between Cardiff and Caerphilly compared to 4tph now.

Cardiff  Bay line gets 4tph to queen Street  shuttle as well as a 2tph service to Pontypridd.  So Cathays to pontypridd still gets 6tph. Cardiff to pontypridd will increase from 5-6,tph to 8tph.

The cityline gains a Sunday service too so now only the Coryton branch has no trains on sundays

https://tfw.wales/sites/default/files/2023-12/TfW%20Rail%209th%20SA%20%28June%2024%29%20Form%20P.pdf

 
I have mirrored that for members at http://www.passenger.chat/mirror/TfW2ORR.pdf

 

This is a silly service pattern. Cathays is Wales's 6th busiest station and the busiest station on the entire suburban network north of Queen Street. Cathays is overwhelmingly a south-facing station – the suburban network should be called the Vale of Glamorgan Lines. Very few Cathays passengers want Cardiff Bay. In general, they want Central, interchanges at Central, or stations Cogan to Llantwit Major/Barry Island. If we're messing with the Bay shuttle, it should go to Caerphilly/Coryton as the less busy branches.

 
A day out in Cardiff today took me eventually to Cardiff Bay.  Here's a photo taken from the station shelter showing work coming on for the second platform and line.
This compares to an up thread photo posted in mid December from the same spot.  A lot of the additional platform is already built and the foundations for the rest are being completed.
The intermediate new station on the way to Queen Street is looking even closer to completion.

 

It's going to be hard to please everyone, especially when you have different train types coming on the electric and none-electric bits. Looking at Cathays as we were doing a couple of days back - http://www.firstgreatwestern.info/flows.html?stn=3820 - one of the dramatic things there's is how much the pattern has changed in the last five years.  And I would ask how much is the pattern effected by the routes offered - if there were (for impractical example)  Cathays to Bargoed direct services, would that flow come up the rankings too? 

 
I think a lot of the pattern changes come down to the way train-trams are to be deployed. Perhaps joining the dots between the following:

• Cardiff Bay extension will be the first 'tram' destination.
• The train-tram depot is in Taffs Well. (Placed here for land availability or political reasons, and service pattern following from this, or located based on service pattern decision...?)
• RCT valleys the most likely (or at least vaguely possible) next 'tram' mode extensions? (Hirwain, Rhondda Fawr etc?)
• The eventual proposed plan (or at least one of them) would have 6tph to CDF and 6tph to CBD from the RCT axis - so the CDB trains are all extras compared to existing pattern. (Again cause or effect? Already decided to run train-trams from CDB that way so extra services needed, or running to CDB because of desire for extra trains? Worth noting more trains needed in total because train-tram shorter than Sprinter.)

 

 
Had a pootle around Cardiff yesterday taking in the Cardiff Bay line to have a look at progress on the upgrades there and take a few pics.
The new platforms, especially at Cardiff Bay itself, are quite generously proportioned but there's still space remaining for the 3rd platform planned for the "Cardiff Crossrail" tram from Cardiff Central station which is due to commence construction next year. 
The intermediate station is also progressing but there's no sign as yet of any electrification works going on that I could see from the train.
The car park on the south side of Central station station is where the tram platforms are to be located with the Bay and tram lines converging after taking a route through Callaghan Square.
Here's the photos that I took from the old bit of the Bay platform that's still in use.

 

398s are to start entering service summer 2025 starting on the Pontypridd to Cardiff Bay service.

756/1s starting entering service 11th november the 756/'s will enter service spring 2025 on the Coryton/Caerphilly to Penarth shuttles

 
There's been considerable recent change at Cardiff Bay station.  The line itself is currently out of operation while the current set of works are underway which includes the electrification infrastructure.  Below are yesterday's photos Cardiff Bay station taken from various viewpoints and angles.  The old fencing has gone as has pretty much entirety the old platform. The catenary is clearly visible now.  Additionally, it can be better seen more how the third platform (serving the future tram direct to Cardiff Central) will fit into the scheme.
Photos below.

 
A few more photos, the last one being the intermediate new station between the bay and Queen Street.