Powertoys feels like one arm of Microsoft to fix windows’ shortcomings due to the other arm via an independent app rather than fixing the actual component because doing so is too fraught with politics and incentives.
It's understandable that it's much slower and more challenging to make changes to functionality that's become part of Windows core.
If something in PowerToys turns out to be a bad idea, it can be removed. It's much harder to justify that when it's been baked into the OS.
Yet Microsoft seems to have no concerns about changing out functional, fast, easy to use components for worse replacements.
The Frankenstein period of old/new settings UI coexisting is further evidence of how painful ripping out OS functionality can be. I doubt anyone wanted to keep those dialogs around.
[0]https://twitter.com/jsnover/status/1653541834751180803?s=20
(that's not the original source for that image, I can't remember where it came from originally)
aand it's doing so for some time now (20y?)