At that time, I'm told that some of those institutions essentially wanted to cherry-pick the collection and just have some works and not others.
Douglas Dodds, Douglas Dodds on Collecting Digital Art at the V&A
It's important to note that most time-based media conservators are working institutionally, and so they have so much on their plate around just dealing with the acquisitions that are coming down to them, and unfortunately don't tend to have time to constantly keep up with the research needed for understanding the technical implications of emergent technologies.
Regina Harsanyi, Preserving Digital Art: Regina Harsanyi, Jon Ippolito