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A lot of the videos in C&C were live action

That was probably well out of scope of what they originally planned for as C&C had quite a lot of pre and post mission videos.

Out of scope, sure, but I agree that that option prevents "extract old video from the production version and try to upscale it automatically" from qualifying as "the best they could do".

"Best they could do" on the budget from EA.

Sure, that's fair.

Which would almost certainly have required different actors, given the 25 years since the original release, and I imagine that would have cause a huge uproar in addition to being fairly expensive.