Here is the thing about Pedro Pascal continuing to actively share posts about The Mandalorian on Twitter and Instagram -- while it would be lovely to think that he is sharing everything out of the goodness of his heart, it IS possible that some degree of promotion of the series is expected of the actors and written into their contracts. There are plenty of actors who have something about Media written into their contracts, and that can include TV interviews, print interviews, various things on social media, etc. So Pedro could just be doing what he is legally supposed to do -- but he could also be doing it because he is a good guy who wants to be supportive of the crew.
Pedro knows about the rumors going around now -- I've seen people tag him in their comments and say things like "Please don't leave the show" or whatever. He has not said anything. IF it were totally untrue and made up, he could have tweeted a reply such as "Don't believe everything you read.'" He has not said a word about it -- neither to say that the rumors are wrong, NOR to say he'll be back for Season 3. And again.... that probably comes down to legalities and paperwork. Pedro likely signed an NDA, which would prevent him from talking about anything having to do with the show behind the scenes, or story lines, etc., until he was allowed.
While on the subject of contracts, Pedro would have known what was in his contract for Season 2 IF he read it. That contract probably had the exact tasks he would be expected to perform in the series for Season 2 -- and if that included more helmet removal scenes than what we saw in Season 1, he should have known about it from the contract. If he was expected to wear the whole head-to-toe set of armor, he would have known about it prior to filming. It's not like he would have found out about what he had to do in the middle of filming Season 2. That's crazy. So that's where I think the rumor begins to fall apart. Something doesn't make sense about Pedro just all of a sudden getting upset in the middle of filming, about something he should have already known before filming began.
Now this doesn't mean that there weren't problems on the set. There are creative differences on sets all the time, so maybe Pedro was unhappy with something and they didn't care. I said quite a while back that I had a feeling that there was some sort of division between the two main stunt doubles (Lateef and Brendan) and Pedro. I just sensed there might be some animosity there. Perhaps Pedro said or did something that made them feel like he was taking all the credit for Mando, and they might not have felt he was being a team player. Perhaps something was written into his contract and then it changed mid-production, so he questioned why he was not doing a particular thing.
I would have expected Pedro to possibly be uncomfortable having to work with Rosario Dawson, as he is a vocal supporter of the LGBTQ community, while Rosario and her family are being sued for allegedly attacking, abusing, etc., a transgender man who was a former friend and employee. Pedro might not have had any scenes with her where they had to be in the same room, but IF they did I don't think he would have been happy about it.
Whatever the case, as unhappy as Pedro might have been, I can't picture his just walking out in the middle of Season 2's filming, or being asked to leave in the middle of it, unless he was just being totally unprofessional and inappropriate. That doesn't seem like him to just fly off the handle and cause so much of a stir on the set that he is asked to leave mid-filming.
So again, back to what I said in a previous post, I can see how the rumor might have sprung from a kernel of truth -- but then got embellished and distorted along the way, as to the specifics, and Grace got the embellished version.
We can only hope that Pedro was able to patch up the problems -- if there were any -- and sign a new contract. That sad, I can't say that I am 100% confident he'll be in Season 3 either. It seems very much like Dave Filoni and Jon Favreau are hell bent on making things bigger and including other Star Wars characters. They might be writing less for Pedro to do.