It seems you got lucky! You raised all this money without having the courage to do something simple, like talking with the people who footed the bill and your cofounder. How's that even possible?
You don't have an obligation to your team or anybody. Imagine if, instead, you make them waste a few years with you when you no longer believe in this business. This is much worse.
In my view, you must be transparent with everybody. If you keep running it, you are no different from Adam Neumann. If I had invested in your company, and you'd keep wasting my money as you no longer believe in it, I'd sincerely believe you are a conman.
ps: I'm still curious why VCs haven't kicked you out. 3,5 years and no revenue. This looks like fanfiction to me. Don't give me those Figma examples; you aren't building Figma.