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DEC operating systems (OS/8, RT-11, RSX-11, RSTS, TOPS-10, etc.) used both characters to mark the end of a line so that the console device (originally Teletype machines) would work. By the time so-called "glass TTYs" (later called CRTs or terminals) came along, the convention was so well established that backward compatibility necessitated continuing the convention. When Gary Kildall cloned RT-11 to create CP/M he followed established DEC convention. Until the introduction of PC DOS in 1981, IBM had no hand in this because their 1970s operating systems used EBCDIC instead of ASCII and they were oriented toward punch-card input and line printer output on which the concept of carriage return was meaningless. IBM's PC DOS (also marketed as MS-DOS by Microsoft) inherited the convention by virtue of being a clone of CP/M, and Windows inherited it from MS-DOS.
What was IBM's PC DOS marketed as by Microsoft?
MS-DOS