From what I've read, this is for the first implementation of unions, to reduce amount of compiler work they need to do. They have designed them in a way they can implement enhancements like this in the future. Things like non-boxing unions and tagged unions / enhanced enums are still being considered, just not for this version.
This is the general pattern of how the C# team operates, IME.
Very much what I've seen from them over the years as they iterate and improve features and propagate it through the platform. AOT as an example; they ship the feature first and then incrementally move first party packages over to support it. Runtime `async` is another example.