Because the International Alpha flag did not mean "I have a diver down; keep well clear at slow speed" when the red & white flag was invented. The Alpha Flag meant "restricted maneuverability" so normal rules of the road for collision avoidance couldn't be followed. It wasn't until years later that "diving operations" was added to the definition.
That makes sense.
Although, the actual definition is
A vessel engaged in dredging or underwater operations, when restricted in her ability to manoeuvre.
Underwater operatons, and dredging are activities that have been carried out well before the advent of SCUBA and recreational diving. So one would have assumed the signal was already used to diving operations (Hard Hat).
There is a slight caveat to that, in that the use of the ALPHA flag is mentioned in Rule 27 section (e), which is for small vessels where the previously specified signals are impractical due to the boat size.
I don't know when section (e) was added to the Rule 27.
Hard Hat diving, and the related equipment, might have meant that the boat sizes weren't so small that the normal signals couldn't be used. But then the British where using very small boats with dive teams to enter sunken U boats during both world wars to gather intelligence (code books etc).