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PC Gamer Interview (YouTube short): https://www.youtube.com/shorts/PQuItMMJxvI

Larian Studios says they havent started on an expansion and that it would require an excessive amount of work to make one, because they would have to implement higher level spells and abilities and those arent easy to do. Also somehow the players couldnt handle that.

Personally I'm 100% fine if they make a BG4 instead. Just as long as BG4 continues BG3 and actually goes to level 20, of course.

Considering how massively downgraded highlevel players have become at highlevel compared to how powerful they've been in AD&D, I dont really agree that any player would be overwhelmed by the power of a level 20 player.

For example, in AD&D, at level 20, a BG2 Sorcerer could cast 6 level 9 spells. In D&D5 you can just cast one.

By the way, the BG1 addon Tales of the Sword Coast (TotSC) only raised the XP bar from 89,000 to 161,000. Which really was just one or two levels, depending upon class. So if Larian makes an expansion that raises the level cap to level 13 or 14, that shouldnt bee too much work from the viewpoint of the new abilities to implement.
Found another video about this: https://www.youtube.com/watch?v=B54k75953Xs

This speculates that BG3 will be treated like the Divinity line of games (that I have never even informed myself about) and Larian will work on a definitive version with lots of bugfixing and possibly some extra content.

So, again, no expansion.

And it is not clear what they will do next.

Personally I dont really buy the explanation from the video that highlevel spells are hard to implement on PC. Worked fine in BG2 ToB, and that had a lot more spells, too.
But they are apparently having discussions about doing and/or adding more content, it would seem. At least with the current IGN interview

But honestly, if it's anything like the previous Divinity entries, it may just be part of the obligatory "Definitive Edition" patch down the road, which should be expected anyway.

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I assume since I never interacted with the GOG forum space, I'm not allowed to post links currently. So, you may have to dig out that link yourself for the time being. :D
Yes they may do some more content which will go into the "definite edition", as they did with their previous games.

But we'll most likely get that definite edition for free, so really its just a final refinement of the game.