I'm not aware of the story ever getting resolved in any canonical sources, though I know that Seeks-The-Moon continues to follow/work with Anne Ravenheart as of 5th edition.
Honestly I suspect they didn't resolve what happens to his family on purpose, for 2 reason. First, it gives players and GMs a chance to resolve that plot line as they see fit in their own campaigns, for better or worse. And second, it really made the whole feel of the story hit home, that even as skilled and capable and heroic as Kyle was, sometimes you never get the answers you want, or any answers at all. In every natural(or unnatural) disaster, they recover plenty of bodies that are never identified, and usually there are still dozens/hundreds/thousands of people that weren't found at all and are officially "missing".
With the events in Chicago it's entirely possible that their story did get resolved, but not in any way that Kyle was ever aware of. Heck technically they could be still in stasis in some bug hive buried under the city, because the hives went dormant and magic did some seriously weird stuff after the Cermak Blast.