Kinda funny because the ESP8266 basically started off as a WiFi "co-processor" with AT commands sent over UART. People quickly discovered it had a good amount of power and you could run your entire application on the ESP8266 instead of using it as a co-processor. That led to an explosion in popularity for "makers" because the chip was so cheap and capable for projects at the time, and I think that led to the ESP32 becoming so widely known.
I did glance at the readme and get the impression that hosted-MCU works for all compatible ESPs and seems more flexible and powerful, where ESP-AT is for select ESP chips and is more limited.