In particular Shiraz Shivji, who was the main designer of the ST, was part of the S900 project.
Pretty sure the S900 was effectively dead before the C128 project was even started.
And in any case the S900 was a monochrome business computer, aimed at the productivity market -- a segment Commodore later targeted with PC compatibles instead.
The C128 was targeted at consumers who wanted to run C64 games.
I still have a (printed on dead trees!) manual for Coherent 3.2 (286 version, circa 1990-91) kicking around. Ran multiuser (login via tty or virtual terminals on the console) in 640Mb of RAM, off a 10Mb fully installed setup. If I remember correctly you were limited to 64Kb code & 64Kb data per process, though ... (Coherent 4.0 removed the addressing limit).