https://www.neowin.net/news/ublock-origin-developer-recommends-switching-to-ublock-lite-as-chrome-flags-the-extension/

EDIT: Apologies. Updated with a link to what gorhill REALLY said:

Manifest v2 uBO will not be automatically replaced by Manifest v3 uBOL[ight]. uBOL is too different from uBO for it to silently replace uBO -- you will have to explicitly make a choice as to which extension should replace uBO according to your own prerogatives.

Ultimately whether uBOL is an acceptable alternative to uBO is up to you, it's not a choice that will be made for you.

Will development of uBO continue? Yes, there are other browsers which are not deprecating Manifest v2, e.g. Firefox.