The FAT file system (1977) stores local time, and no time zones. CDFS a.k.a. ISO 9660 (designed in 1986) was better than FAT but still less than ideal, it keeps local time, and offset in 15 minutes intervals between local time and GMT. That’s not generally convertible to UTC either.
Windows NT came with the proper file system which keeps time in UTC (also high-resolution, 100 nanoseconds versus 2 second in FAT) but most people only upgraded to NT and NTFS in 2002 with WinXP, and various external drives were still using older file systems without UTC timestamps.
.NET only dropped the support of Windows 9.x in .NET 3.0 (2006), and even afterwards they probably wanted to support all these external drives. Including timestamps of the files on these drives.
2) It’s the wrong model for representing dates and times so you end up with stuff like the midnight convention (which would be fine if it wasn’t for point 1)
In short: in 99 instances out of 100, you would be better off using DateTimeOffset, DateOnly or TimeOnly.