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I feel like Morrowind did the Daggerfall lore a bit dirty.
Why did the dwemer trade the inert God Numidium to Tiber Septim? Did the dwemer not realize they could find a way to activate it? Are they stupid?
The activation got seriously messed up: in Daggerfall the strongest archmage's soul was powerful enough to create the Mantella that activates the Numidium. But in Morrowind the heart HAS to be very explicitly that of Lorkhan's, the God of the material universe's.
So in order to make pieces that don't fit, fit they soft retconned it so that Zurin Arctus, later known as Underking, was in fact an avatar of Lorkhan, despite not having any thematic ties to Lorkhan.