The Y-85 had been in dramatic short supply.
So the empire resorted to the Lambda Model and modified it.
Now it can carry an AT-AT.
Plus needed weapons and field supply in standard imperial landing units.
Smaller shuttle in comparison to the AT-AT.
More subtle.
And it gives a sense of power to the shuttle, as it obviously is strong enough to carry a payload that is much heavier than itself.
Larger Shuttle in comparison.
It can drop its nose to better see the landing spot and deployment process of the payload.