That may be a thing with some releases, but I'm convinced that the original pet sounds and even the MFSL mono release are very inferior to that one HDCD stereo release. Still I'm listening to in 16bit/44kHz form, but to me it sounds way higher fidelity and likely is closer to the source. I can pick out instruments and sounds that I didn't hear in the other version.
In general though I find modern 'remasters' are horrible and compressed and I think it's lame that services like Spotify usually have only the most recent (and therefore worst) version of a given album.
May the source be with you
I think it's the tendency of producers in that era, around 2000-2010 was peak Loudness War, and many albums were pushed into clipping. IMO it started getting better through the 2010s as the emphasis on radio charts started to wane and listening habits shifted away from earbuds and portables.