I haven't heard that Canvas was looking at an in-house solution, but we have used EvaluationKit (https://www.watermarkinsights.com/our-approach/course-evaluation-institutional-surveys/) for the past several years. I'm the admin for both (canvas and evaluationkit) and there have been some ups and downs with their solution, but the integration with Canvas (for configuring evals and for prompting students, etc.) has worked pretty well.
We use EvaluationKit here, and we've been very happy with it overall. The Canvas integration is excellent, in my opinion. Evaluation practices do seem to vary wildly from place to place, so I'd definitely recommend looking at the different available tools and finding one that will suit all of your specific needs.