As for why it failed, it could be due to natural causes, or perhaps it was because of the damage from war.
Wudang Mountain was also affected by wars multiple times before the Ming Dynasty, and two instances had the most significant impact.
One was the struggle for orthodoxy. At that time, Emperor Zhenwu was worshipped on Wudang, but the Yuan Dynasty rulers, for some unfathomable reason, insisted on calling him the "Founder God" of their grassland people.
They wanted to use this form of religion to consolidate their control over the south. Although the Yuan Dynasty claimed they wanted to solidify their rule through religion and promised to protect the sacred site of Wudang Mountain, their expectation for the Taoist Sect to swallow this bitter pill without resistance was naive.
A simple illustration: imagine if someone suddenly told you the Jade Emperor you worship is actually some short and stubby fellow's grand deity, and now they want to rename him—how would you react?
