Why Repulse received only a minor refit

Was Repulse's refit stopped because Hood received priority?

No; Repulse received the minor option because the larger investment was directed toward Vanguard.

The Admiralty considered a major reconstruction of Repulse but chose a smaller refit. Resources and attention instead went toward building Vanguard, a choice sometimes confused with Hood's competing needs. The rejected option would have resembled Renown's extensive modernization rather than the limited work Repulse actually received. This distinction helps explain how capital-ship programs competed for scarce yard capacity without reducing every decision to a simple Repulse-versus-Hood choice.