Advertisers chose to ignore DNT because they claimed Microsoft making DNT enabled by default took agency away from the user. In reality, they probably weren't going to honor it anyway.
Microsoft is too sophisticated to plead ignorance; they are responsible for that outcome and I think we can assume they knowningly chose it. (Though now Microsoft browsers are such a small portion of the market that it doesn't matter.)
The biggest failure of DNT was browser makers - including Mozilla - removing it. It has zero performance impact (1 bit?) or development cost. As long as it was out there, when there was momentum against tracking, advocates had evidence of both demand for privacy and of trackers ignoring user wishes.
There's an inherent conflict. No one _wants_ to be tracked, there is no direct benefit to being tracked and only downsides. And advertisers want to track you. So there was no way to respect the flag other than making it obscure so only a few dedicated people turned it on.