Your whole approach to this is a bit odd in itself, and is certainly back-to-front. Go back to the fundamentals. They weren't compelled to spend ten million quid on upgrades because of a conservation area, they were compelled to throw some supporting blurb about conservation into an existing project because that's how planning works.
Apart perhaps from media misinterpretation, all of this is an aside - what the motivation for the project was is still open to debate.
Yes, this is exactly my thinking as well. You don't get grants of 10 million quid just for a face lift. I said this yesterday all councils, social housing providers etc are obliged (they have no say in the matter) to thermally upgrade their properties. This is how you get the grants.
It is clear that they changed the windows at the same time as important when thermal upgrades are being carried out. If you were to scaffold a building like this (in fairness they probably used mast climbers) then that would cost a million quid in itself. So the idea is that if there is no wall insulation and the windows need replacing you do the whole lot at the same time.
Now there are lots of issues around how the work was carried out but the motivation for the work seems to be what it is. To improve the building. However if you're a resident you're clearly going to be hacked off if they spend 10 million on things you didn't ask for and the lifts don't work etc.