Vendors hated it. I've seen a vendor group document asking NSA not to publicly certify systems at the highest levels because it make them look bad. They got DoD to go for a system where the testing was outsourced to private labs, and you could keep going back for a retest over and over again until you "passed".
Amusingly, computer security in those days wasn't a high priority at NSA for a bureaucratic reason. Computer security was at FANX, not NSA HQ at Fort Meade. FANX is the "Friendship Annex", a few miles from NSA HQ, near what used to be called Friendship Airport and is now BWI. FANX had all the minor functions of NSA - personnel, procurement, training, etc., and was considered a dumping ground for losers. Putting computer security out there doomed it.
What really killed security is that from 1940 to 1980, DoD was the major consumer of advanced computer and electronics technology. By 1990, the commercial sector was dominant.
Here are the early security standards books.[1]