In 2016 BRIO rebranded their wooden railway line of toys to BRIO World. Presumably in a bid to set themselves free from the train-theme, which is arguably quite "closed" as a concept. It can be seen as limiting to ride trains around a fixed track. BRIO World might have been an attempt to promote more open world play. Under BRIO World a new theme appeared, named Village. The BRIO World Village toys had nothing to do with trains anymore, although they would share the same figurines and wooden (cargo) blocks we know from their railway line-up.
Evidently it failed. It was a big initiative but it became clear quite quickly that these toys weren't selling as well as they had hoped. The reason for that might be that this is not what BRIO was known for, by the people. Or maybe that much of the toys were just plastic. Or maybe that the dimensions of the toys did not match the rest of BRIO's railway products at all. When designing dollhouses like those of Village the proportions are naturally whacky because they need to account for kids hands reaching into the rooms of the houses, but when combined with a world in which different dimensions were used there was definitely a mismatch.