I know there are a ton of theories on what happened to the dwemer like they became the skin of the numidium, got sent to oblivion, or just died and the red moment dragonbreak creates many different accounts on what happened but the theory that the dwemer got sent forward in time is my personal favorite theory.
I remember reading somewhere that one of the former writers for Bethesda (not sure if it was Michael kirkbride or not) said that the dwemer got sent forward to the 9th era where their technology would become obsolete. While this was NOT CANON, I always found it interesting.
It would also add up with what Vivec and divayth fyr have to say on the disappearance in morrowind. Both are some of the most powerful being and don’t know where they are but what Vivec says is interesting. He says that they aren’t on nirn or in oblivion which means two things; they are either dead or they got sent through time. It makes sense because you can’t trace someone if they are in the far future.
Another thing is that their cities and tech don’t age. While this could be the way it was built, the fact that their ruins only get damaged by natural causes like earthquakes or other elements and not by aging is interesting. If you compare dwemer ruins with other ruins seen like Nordic or aylied, they are in far worse conditions but were built with stone too.
Yagrum being the last dwemer also supports this theory. When the dwemer disappeared, he was in an outer realm and time isn’t linear and doesn’t work the same way in oblivion. ESO has good examples of this because you can encounter Darien Gautier who gets trapped in the colored rooms after helping you fight molag bal and if you play the summerset chapter where he appears again but you do it before the main quest, he asks you if you remember him and he tells you time in oblivion works differently as you can encounter him from the future before you could even meet him from the present.
This is just a working theory but I always thought it made sense on what happened to them.
Source: reddit.com
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