Cherokee has always been bad. And by bad I mean high incentives to get the number of sales to what they were.
It is really sad that Cherokee isn't a more competitive product. Or that all three small Jeeps combined are outsold by RAV4. Or that small Jeeps tanked so bad (some of which would be parts allocation, certainly) in 2021, that RAV4 almost doubled the sales of all three small Jeeps put together (in US sales).
The smaller CUV segment is being gobbled up by Toyota just like the small and midsize sedan segments were. Nothing appears to have been learned.
The problem I saw (as a former KL Trailhawk owner) was that Cherokee was very much a compromise, square peg in a round hole. It tried to fulfill too many "needs":
1. Needed to be on CUSW, and thus FWD biased
2. Needed distinctive looks.
3. Needed "off road chops"
4. Needed to compete with similar sized commuter CUVs on interior dimensions and economy
5. Needed a "large" engine (the 3.2 PStar).
6. Needed a modern drivetrain.
In doing that, they created a vehicle that was ok, but there were much better vehicles available (including, in-company, the Wrangler) to fulfill a customer's needs within the same budget.