So, why did 'they' use that gauge then?

Because the people who built the tramways used the same jigs and tools that they had used for building wagons, which used that same wheel spacing.

Why did the wagons have that particular odd wheel spacing?

Well, if they tried to use any other spacing, the wagon wheels would break more often on some of the old, long distance roads in England . You see, that's the spacing of the wheel ruts.

So who built those old rutted roads?

Imperial Rome built the first long distance roads in Europe (including England ) for their legions. Those roads have been used ever since.