Answer:
After leaving the cabinet with JShlatt, George seemingly disappeared off to somewhere secluded. While others were battling and raining down withers or bombs he was just building a nice little cottage. After the war had ended and new Lmanburg was back, Tommyinnit came in as revenge against Dream and burned down Dream's cottage. This lead to Tommy being exiled and George seemed to just about forget about it. George was apart of Kinko Kingdom with SapNap and Karl but rarely appeared on streams so there was an ongoing joke that he's just always asleep.
Interesting lore appeared when Dream XD, the god of the dream smp appeared to George saying that he looked like someone he used to know. The god seemed intensely fond of him and George used this to his advantage to get himself very good items. Eventually Dream XD grew angry with Georges demands and yelled at him for being greedy. He still appears to George rarely.
Step-by-step explanation:
Dream SMP am I right?