He made a deal (not public) with the government, he leaves Wagner and gets out of Russia and the government leaves him alone. 2 months later a private jet with Prigozhin and several Wagner commanders exploded in the air in Tver Oblast, not far away from Moscow. There is video online of the plane breaking apart and falling if you search hard enough.
The deal seems to not work out.
I think there were no official explanation for this incident, propaganda posts explain that they were using drugs and playing with a grenade onboard.