I personally think it could be a INTERESTING idea... we need to remember this will in NO SHAPE or form be connected to the Alien Franchise.
You could see HOW it could have been similar to what could have been explored in a AC sequel though, this would depend on what a AC sequel could have been.
The Covenant was a Colonization mission where 3000 or so Humans (1000 of which are Embryo's) are off to another Earth like World to start NEW, to escape the rotting Paradise that was ONCE Earth...
Earth would not doubt be in a State of Despair... Over Populated, Technologically Advanced compared to the Times of Antiquity which with that the last 250 years of Industrial Revolution and Particularly the 1900's to Mid 2000's (1900-2050) we have a World with a every Growing Population, Pollution, Waste... if things are not reversed then we could see a Smog Covered Earth that Alien 3 gave us a Glimpse at...
Then we have the Conflicts, Wars over Capital Gain, Fuel, Money and also Religious Conflicts...
Can anyone be blamed for wanting to go off to START AGAIN? To set up a Colony, learn from the Mistakes Mankind has made over the Centuries and have the Starts of a New Settlement maybe even living by more Basic Ways compared to the Majority of Mankind do now?
This was the Premise of the Covenant Mission... which ONLY came into being connected to the events of ALIEN by Virtue of that Neutrino Blast... had this NOT happened, then in 7.5 years the Covenant would have arrived at Origae-6 and those Colonist would have been able to START AGAIN.
It could be likely that RS Raised by Wolves offers a similar Premise, a Colony Mission to START AGAIN on a Earth-like uninhabited (by Intelligent Life) World.
If we go back to the Covenant Mission, and imagine the SHIP has TWO Androids... and it has say a smaller Colonist Total say 200 and say 500 Embryos... so a Smaller Scale Mission and the SHIP suffered a Mishap on the way where ALL/MOST of the Colonist Die, and all that remains is a Handful or NONE and say HALF the Embryos Survive.
We then assume the TWO Synthetics continue to their Destination and they NOW are tasked with setting up and Raising those Embryo's.
The Question then is WHAT do the Androids Teach the Humans as they grow up, do they get taught our History, and when these Humans start to learn about our History and Religions, its a case of HOW do they deal with these.
While also wondering HOW does a AI deal with Teaching the Colonist about their History, and such things when they KNOW that these Religions and Mythos are False..
In part that makes for a Interesting Story! The Problem is going this route for a Alien Covenant Sequel would not be VERY Alien.... you could not do these things much Justice while also having to SET-UP the Inevitable connection to ALIEN.
As a Stand-alone Story it could be very Thought Provoking and Interesting, i think in HINDSIGHT the Prometheus Plot and all these Philosophical Themes are a Mistake and they should have given in to the Fan-Boys and gave them ALIENS and ALIENS and revealed the Space Jockey as well a ALIEN race in NO-WAY connected to Mankind..
The Prometheus Plot then made into a Stand-Alone movie.... same Plot.. just NO Weyland, NO Xenomorphs and NO Derelict/Space Jockey looking Ships/Space Suits and it could have been a EPIC Stand Alone Franchise.
I think this Raised by Wolves could be something interesting to take a look at, its not going to please ALIEN fans because its not meant to be a ALIEN movie... and regarding Sci-Fi a lot of Sci-Fi is based around to some degree AI/Robots.. more so than Alien Monsters... a lot of Sci-Fi does revolve around either Space Travel and what Horrors await, or Technological Advancements and what Hubris they bring.. and the IMPACT on Human Characters.