Isn't that lack of dynamic range part of why they were dug up though? That through the loudness war that extra dynamic range was simply used to push the levels higher and higher and since vinyl was not capable of such levels it would receive a mix/master that actually ended up with better range than the CD digital format?
No, that's not how dynamic range works.
Dynamic range is the distance between the loudest and the quietest part of the signal that can be conveyed.
Technically digital (these days) has a much bigger dynamic range than any analog format that existed.
But, due to loudness war, pretty much all of that dynamic range is left unused.
Vinyl on the other hand has a limited dynamic range. But it also has other limits, like the mechanical limits of the needle.
That is why it can't handle a too small dynamic range!
So on the one hand vinyl has a lower noise limit, defining its dynamic range. And on the other hand, you can't squish the dynamic range too much or else you'll run into other mechanical problems. These are separate limits.
The vinyl comeback you mention is partially due to the fact that vinyl masters couldn't have their dynamic range reduced too much. The mixes of yesteryear (like the ones on vinyl) used to have a much bigger dynamic range, despite the fact that vinyl has a lower available dynamic range compared to modern media.
The problem is in how this available dynamic range is used and not so much the availability of dynamic range in a give format.
Long story short, we have much more dynamic range available in new formats but it is being completely wasted for the purpose of commerce.