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Believe they said it was due to player feedback. Likely people didn't like playing Iron Banner Gambit and made that known. And Bungie is desperate to get some good press so changing things after 'feedback' looks good.
Because D2 players only want new stuff but then complain when they get new stuff.
As far as I'm aware, it was changed due to a large bad-perception of the game mode. I hadn't gotten a chance to try it, so I'm not 100% sure what issues it had.
https://youtu.be/Ak9mELsCfVw?si=7Je5Wy6W_IQXF7oV
Cammy has this video on it. I missed that version of iron banner