The legal battle between Arriva, Stagecoach and the DfT has now been concluded. Arriva settled out of court with the DfT. The case between Stagecoach and the DfT went to the High Court, with the DfT winning. Judgement for those who wish to read through the legalese:
https://www.judiciary.uk/judgments/2019-rail-franchising-litigation/