The way I remember it was that that IDE controller, and some others, could
only work in "serialized transaction" mode, which placed some restrictions
on the IDE driver in PIO Mode and ruled out Bus Mastering mode completely.
Win95(A) never had Bus Mastering driver support but Win95(B) (sort of)
did... if you count the driver of the week comedy we went through with
Intel et.al. at that time.
The way I recall it, even from the start, Win95 *was* sold as having
preemptive multitasking; OTOH anyone who used it could be excused for
thinking that it didn't.
Again, it's hazy, but as I recall that was as
much to do with the legacy 16-bit GUI compatibility and the infamous
"Windows Resources" as anything else.