KOTOR 1 was a bad game, they'd have to do a complete rewrite of the story, most companions & rework the entire combat system. Best case scenario they can make an average game out of it.
As if rewriting the game in this day and age would make it better.
KOTOR1 was only well-regarded because almost everything Star Wars (a few comic books and the JK games were good) had been complete shit for a decade. If it hadn’t been released at a time when the franchise’s health was at an all-time-low it would have been regarded as a thoroughly mediocre release. At least on PC. Consoletards probably would have still consoletarded.
IIRC everything SW started to be widely despised and ridiculed only with the start of the new millennium. Most SW games in the 1990s - Dark Forces, X-Wing, Jedi Knight, Battlegrounds etc. - were commercial, critical and fan megahits.
I think KotoR got popular simply because
1) after the embarrassing prequel trilogy it was good old SW again
2) it created the cinematic RPG genre that Bioware became famous for
3) IIRC it was a p. solid gaming experience all around (don't quote me on that, last time I played it was 15 years ago)