In the most recent Xbox podcast, Microsoft have confirmed they have delayed Fable into 2026.
The official playground games twitter account posted the following tweet today:

We know how excited you are for Fable, and in order to make the best game possible for our players, we’re going to take a little more time and launch in 2026.
Craig Duncan, head of Xbox Game Studios talks about the delay and more including a look at how Fable is coming along in the podcast video which we have added below.