The key thing for people to ponder on is why a "commercial dispute brought production to a halt".
Commercial disputes would be overcome or competitors would fill the gap if there was a market. My perception is that the reliability and simplicity of surface-based recirculating systems far outweighs any advantage of removing one hose from the umbilical bundle. They also allow all of the diver's back-mounted weight and bulk capacity to be used for bailout.
Overview:
The advantage of adding a demand exhaust regulator to the hat and an exhaust hose to the umbilical is all of the maintenance-intensive and critical systems are on deck where life support technicians can manage them. There is also a very long delay in recycled gas getting back to the diver, providing plenty of time to rectify a problem (like hours).
Surface-based recirculating systems aren't constrained by power, space, weight, or the necessity to go offline for repairs. Redundant compressors, water separation, scrubbers, analyzers, O
2 makeup, and gas storage systems are in environmentally controlled spaces along with all the spare parts that decades of service have shown might be needed.
It is important to understand the demand for reliability beyond diver safety. The DSV (Diving Support Vessel) will lease for $100K to $500K/day. As far as the client is concerned, the entire value depends what a few divers can accomplish while locked out. They don't derive any value from the ship or crew beyond the necessity to support the divers. A failure of a back-mounted rebreather/recirc system would take at least an hour to turn the bell around to fix/replace the problem. That time would usually be charged back to the ship owner, down to the minute.
It is even worse when the work that divers are doing is time sensitive to the client, like production being offline, and/or other vessels are supporting the operation. These costs won't be changed back to the ship, but will make the client look for other contractors if downtime is more than with competing DSVs.
With all this in mind, it is easy to understand why rebreathers for normal operation aren't in demand. It doesn't matter how safe it could be made. It also wouldn't matter if it reduced the initial cost of equipment or the salary for a few technicians. That would be just a rounding error on a $50+ million dollar DSV.