Is it a bad sign if the college your child is planning to attend is still accepting applications for Freshman this Fall?
Not necessarily. Even pre-covid there have been surprises on the list every year. This year it was particularly difficult for colleges to estimate yield. It appears some students not wanting online learning or a socially distant freshman experience are taking a gap year or deferring. With colleges uncomfortable spending down their endowments to attract students, supply is simply greater than demand this year.
If the school is a fit for you, go and make the most of it.