I don't know for sure about the LCRA, but for the sake of my answer, I am assuming they are set up like the BRA, which controls the rights of Lake Belton and Stillhouse.
The short answer as to why they don't retain water above conservation pool is because it isn't their call. The management of the lakes is done by two different agencies, the Corps of Engineers and the BRA, and while they cooperate well, they have different missions. The Corps of Engineers built the dams, and manage the dams with the primary mission of flood control. Recreation and drinking water are very nice byproducts of their mission, but that isn't their primary mission. The Corps wants to get the lake(s) out of flood pool as quickly as is safely possible.
Once out of flood pool, and anywhere between dead pool and top of conservation pool, the Corps will open and close the gates of the dams at the direction of the River Authorities. The River Authorities have the mission to deliver water as quickly and safely as possible to the holders of the water rights they control. So once lake levels are below flood pool, it is up to them how water moves through the system.
The short answer as to why they don't retain water above conservation pool is because it isn't their call. The management of the lakes is done by two different agencies, the Corps of Engineers and the BRA, and while they cooperate well, they have different missions. The Corps of Engineers built the dams, and manage the dams with the primary mission of flood control. Recreation and drinking water are very nice byproducts of their mission, but that isn't their primary mission. The Corps wants to get the lake(s) out of flood pool as quickly as is safely possible.
Once out of flood pool, and anywhere between dead pool and top of conservation pool, the Corps will open and close the gates of the dams at the direction of the River Authorities. The River Authorities have the mission to deliver water as quickly and safely as possible to the holders of the water rights they control. So once lake levels are below flood pool, it is up to them how water moves through the system.