Wolverine's Iconic Yellow Outfit: The Matrix Effect

When The Matrix set a trend with its sleek black leather, studios followed suit, deciding that Wolverine's yellow suit didn't fit the serious tone they were aiming for in superhero films. As a result, Hugh Jackman’s Wolverine traded his classic comic book look for the dark, leather-clad appearance we saw in the 2000 X-Men movie.
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[Drifter]

So in other words ‘poor judgment and ego.’