Lars must have made a special pact with Vince a la Shawn Michaels. It all makes perfect sense through that lens. Vince will have probably held up his end of the bargain once Lars' monster heel run comes to the end of the typical shelf life of these characters.
Can you imagine in the late 90s having lars as Shawn michaels bodyguard? He could sing shawn michaels music. When speaking he never refers to Shawn by name. Only calls him Boy Toy.