Yes, strict cancellation policy. For those following the drama, they keep extending their extenuating circumstances policy out but it doesn't cover most of the summer yet. Apparently the circumstances are only extenuating for the immediate future.
That's unlikely at this point. Enough people ignored social distancing and still are not wearing masks that the powder keg is about to explode. There also will be a second wave.
The social distancing thing is subtle, it only takes a few outside of the bubble interactions to break the whole thing. Given the 2+ week lag we are still seeing the initial wave propagate and has not yet peaked.