The Dream Gun project was a group effort of Brownells and several parts manufacturers to showcase both aftermarket parts and custom gunsmithing. The pistol that happened to be chosen was a S&W M&P. Apparently, some lower or mid-level legal beagle at S&W got wind of the project and thought Brownells and/or the other companies involved were going to be selling these pistols as a model, with the S&W name still on it.
Once the CEO of S&W got involved and figured out what was really going on, he made the necessary apologies and rescinded the cease-and-desist order. Overall, it was not S&W's finest hour, but perhaps not as bad as signing up with Clinton's Marauders a number of years ago.