I manage the team at Google that currently owns the Puppeteer project.
The previous team that developed Puppeteer indeed moved to Microsoft and have since started Playwright.
While it is true that staffing is tight (isn't it always), the number of open issues does not tell the full story. The team has been busy with addressing technical debt that we inherited (testing, architecture, migrating to Typescript, etc) as well as investing in a standardized foundation to allow Puppeteer to work cross-browser in the future. This differs from the Playwright team's approach of shipping patched browser binaries.