Price of TBM, amount of land extracted.... there can be a decent savings from minimal TBM diameter.
SkyTrain cars are smaller in width and height thanks to the LIM (LIM brings the train body closer to the ground). This is precisely why LIMs were studied and used for
a similar application in Osaka, Japan about the same time the SkyTrain first opened.
Regardless of train width and vehicle height, LRT in a tunnel should usually require much larger tunnels because of the need to accommodate for significant additional overhead for the power delivery (pantograph, wires) compared to a rotary motor metro or linear motor metro with third rail power. This is illustrated well in the Eglinton LRT proposal: a massive 6.5m diameter for each tunnel.
I now realize that the 5.7 value dictated in the Hatch Mott McDonald PDF for the tunnel is pertaining to tunnel size, not necessarily tunnel boring machine size (which might be somewhat bigger) - but that still puts the TBM size at smaller than the one used for Canada Line (considering that on Eglinton LRT, 6.7m TBM is to 6.5m tunnel... therefore I think it's fair to assume that 5.9m TBM is to 5.7m tunnel). I guess the Evergreen Line cars were slated to be very small to help bring the costs down or something? Perhaps it was to use 2.4m LRV offerings (vs 2.65m ART, 3.2m Rotem EMU), but I don't think that addresses the height disrepancy.