The puzzle-solving techniques that had worked well for struggling students weren't "a better way to read" — they were coping skills, and turning them into the focus of the curriculum was doomed.
Re-integrating phonics for a blended approach improved outcomes, but it took decades for the new research to really shift things. The funding, the investment in curriculum, the professional reputations… even to this day there's still pushback against “outdated" skill-based phonics approaches.