First off, IBM did put CPM/86 on the PC and sell it. Many people bought it. We had it at work. The reason CPM/86 failed relative to PC-DOS was simple - CPM/86 cost nearly $300 and PC-DOS cost $40.
There wasn't anything discernably better about CPM/86 at the time, either its programming API or its user interface, and people did the sensible thing and bought the less expensive operating system. It was a no-brainer.
As to the idea that CPM/86 was somehow a secure operating system, I haven't heard that before. It's patently false.
What killed CPM/86, plain and simple, is it was way, way overpriced. I have no idea who made that decision.