Universal Studios Great Britain
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Slight correction. Got the land location wrong its a tiny bit further down. But 500 acres still works as part of the area. From the council property map which was said to be of Strategic Site Allocation Area

Did some geo location on the concept art. Wether or not its up to date. The location of that park is actually Caldecote in Milton Keynes Which is right beside the M1 and based on the concept art looks like there could be an elevated transport to Milton Keynes Station which is a main HS line. Looking at the land property map this could very well match the rumored 500 acres.

Source: https://twitter.com/aalllllyyyyyy/status/1736854928297968029/

https://orlandoparkstop.com/news/theme-park-news/universal-studios-great-britain-possible-location-revealed-for-uk-theme-park/

The UK Universal project is back on according to a trusted park scooper in the InsideUniversal forums.

Completely separate from ‘The London Resort.’

https://forums.insideuniversal.net/threads/universal-re-acquiring-portaventura.15724/

It now says Paramount Studios UK Feasiblity on that same area.

On the Pro Forma Advisors website, Project Experience page, a pin on the world map is for "Universal Studios UK Feasibility" and the pin's image shows The London Resort. The client listed is London Resort Company Holdings, so unless it is a mistake, this confirms that at least at some point Universal was potentially involved in the plans for a theme park in Kent.

Source: https://www.proformaadvisors.com/home/theme-parks

Is this rumor dead?

No, Camelot is (or was) in Lancashire. At least 4 hours driving away from London.