they choose to pretend it never existed
I have a feeling they are deeply ashamed of everything related to the Virtual Boy, even the best (and possibly the only decent) game of the console.
Reggie praised the VirtualBoy in a video on the Game Theorists channel on YouTube, recently.As silly as that sounds, it seems to be the case. Nintendo is known for nostalgia and referencing their previous works, but VB almost never gets mentioned (save for that single microgame in the first WW)
I think enough time has passed that we can look back at the VB with curiosity as opposed to revulsion. Plus anyone, anyone who played VB Wario Land knows it's spectacular. Then and now.
It's ok, Nintendo.