Seaslug wasn't especially delayed, from 1949 onwards it was seen as a system ready for ship-fitting in the 1957+ timeframe, hence it appearing on "1960" cruiser concepts in 1949. That timeline, and the available R&D resources, did drive some decisions, e.g. it is part of the reason why it was beam-riding and not semi-active radar homing, but compared to some other programmes it wasn't particularly delayed.
There were never any serious plans for converting existing cruisers. Periodically a senior officer would travel to the US, hear about or see the US cruiser conversions (e.g. the Bostons and Galvestons) and then muse as to whether the RN could do something similar with its existing ships. The answer was always the same, the level of work required to convert an existing ship (complete rearrangement of internals, new electrical system, additional generating capacity, etc.) was prohibitive. Additionally, the ships would be nearing the end of their theoretical hull lives by the time the work was done, and the hulls didn't really have enough volume. The USN had a glut of unfinished or very young, comparatively high volume, cruiser hulls at the end of the war. The RN didn't, the few modern cruiser hulls it had were relatively small having been designed to, or evolved from, treaty compliant designs. The well-known Fiji proposal has been given far more credence than it deserves, it was almost certainly drawn for the sole purpose of demonstrating it wasn't a good idea and to nudge decision making in the direction of new construction GW ships.
The real opportunity with Seaslug is for a bigger missile. The Seaslug handling system could handle a larger missile, the limiting factor was the launcher. This was explored during the process that lead to Seaslug Mk.II. By replacing the launcher (
which probably explains the twin arm launcher models in photos at the Barrow Dock museum) a larger, longer-ranged, missile could have been adopted. This was proposed but wasn't pursued and the actual Seaslug Mk.II was built within the dimensions and aerodynamic configuration of the Mk.I. In an AU world, combine this larger missile with continued development of the homing head included in the design for a period in the early 1950s and a very interesting weapon for the early 1960s is possible.
The ideal Seaslug ship system used two GMS.1 guidance systems, as this matched the number of engagements to the launcher reload cycle, combined with a Type 984 3D radar. A double-ended configuration (e.g. two Seaslug launchers and four GMS.1 systems) was preferable. My AU optimal Seaslug ship would use this configuration with a pair of Seacat systems, a 32 or 48 track CDS system, no armour or guns and as many Seaslugs as could be carried with that equipment with the two shaft 90,000shp (60,000 SHP steam, 30,000 SHP GT) machinery proposed as part of the Y102 studies. This would produce something akin to a British Leahy.