What’s the long lost LEGO set and why was it canceled?

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Buttsex Island.

They couldn't get it approved for the Chinese market (Sweden was highly enthusiastic, but they'd have sold at a loss).
 
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Didn't Lego have to pull some sets with licensed Shell Oil logos a few years ago because Greenpeace and/or some other environmental group pressured them to stop funding oil companies? (Lego still sells gas station sets with their fictional "Octan" petroleum branding.)
 
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Was cancelled right before they were set to ship for full release, supposedly because they don't want to make military vehicles. Probably an excuse because that begs the question why it was made in the first place, and besides that it's already coast rescue colors. The real reason was likely due to a poorly designed drivetrain that applied to much torque to the gears and destroyed them, and lego can't admit to slipping design standards. Stolen Leaked units can be yours for "collectable" price of $700.
 
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