To me, this is just another story of the music industry’s technical incompetence.
Even in the 1990s, everyone would have known that hard drives were not a long-term archival storage solution. This is like crumpling up a piece of paper, tossing it in the corner, then being upset decades later when your “archival solution” had issues.
A bunch of paper tossed into a corner could get wet, mouldy, get munched on by rats, etc. But, I know what you mean. Spinning plates full of magnetized bits with a connector technology that only lasts a decade at most is hardly going to be reliable, even if stored under ideal conditions.