I recall getting stuck in a DLL hell back in Windows 3.11 ATMFD's granddaddy was still supposedly serviced more directly by Adobe themselves and it was a free for all across various application installers which versions they attempted to install. Windows 3.1 era Games had a bad habit of stuffing weird old versions of Adobe Type Manager into their installers. I forget details of the offenders, but there was a particular many-times-too-many repeated sequence of installing an application then immediately repairing/reinstalling Office to fix the Adobe Type Manager. Forgetting that last step IIRC was a very subtle problem until it wasn't, starting as weird message boxes and then eventually culminating in (days of application use later) Stop Codes that crashed Windows 3.1 back to DOS.
Moving things into the kernel is one heck of a sledgehammer solution to DLL Hell, at least.
(Windows 10 has slowly moved a lot of the graphics stack back out of kernel space. It appears to be moving the right direction, just very slowly.)