A bit more history. Gene Stoner reportedly designed the SR-25 during the summer of 1991 (while staying at his house up in Michigan, although his new employer, KAC was down in Florida). He took his original AR-10 design plus his original AR-15 design from the mid-1950s, combined various design elements together, added the 10 to the 15 to make 25, and SR-25 was born that summer. I think the first civilian SR-25s were sold in late 1991 or 1992.
Like almost all semi-automatic firearm designs that are tested harshly by the military, problems large and small are identified that need to be corrected.(This pattern of functional issues with prototype examples of the M1 Garand, the M14, and M16 - appears universal. The SR-25 followed the same pattern as its semi-automatic predecessors).
The Crane small arms engineer who tested SR-25 s/n 00001 with Reed Knight, shown below, told me about some of the issues (but not all of them apparently). 1. The 1960s era AR-10 “waffle” mags were not very unreliable, and KAC subsequently redesigned them. 2. Gas port issues, 3. some bolt extractor/lubrication issues, and 4. the 24” barrel was too heavy and too long. 5. It took a while to get the KAC suppressor to perform as required. Most of that development occurred between 1992 and likely 1995 or 96, but the suppressor design was still being worked out in the late 1990s. Gene Stoner died of cancer in 1997.
As I understand it, by late 1990s the SR-25 had finally been refined into a complete “mil-spec” system, complete with all the kit needed for a SEAL sniper. The first 300 of the new Mk 11 Mod 0s were ordered by Crane in May 2000. It was a rather expensive system, but orders started flowing in from other military branches and federal agencies throughout that turbulent decade.
FWIW, I suspect commonality of many of the small parts with the AR-15 was a valid selling feature to the military, as it simplifies repairs/logistics somewhat.
Lastly, in the 1990s Crane/SOCOM reportedly wanted to replace their old non-suppressed M14 SSR semi-automatic 7.62 NATO sniper rifles with a
suppressed semi-automatic 7.62 NATO rifle that was
still procurable and supported. The last USGI M14 receivers were made in 1964 (problem 1), and gas port rifles simply don’t play/function very well with suppressors (problem 2) - so those were two issues that the SR-25 resolved. That’s my take on why Crane spent the 1990s working closely with KAC to refine the SR-25 into a mil-spec, semi-auto, suppressed, 1-MOA capable sniper system.