These engines were prototypes for a USRA type diesel that could be used in military situations where the prodominate gauge was meter. Had either design been successful, then the plan was to have made a number of these and then stash them in an Army depot somewhere until needed. But this was happening in a time frame where military strategic planning was evolving away from traditional means of support like railroads, to the so called quick response we see today that relies on things that move through the air. By the time I was attending the transportation officer basic school at Ft. Eustis a mere 6 years after I saw the 3000 in Durango, rail operations took up only about 2 days of instruction time, and the standard gauge instructional railroad at Ft. Eustis, with both steam and diesel, was seeing very little use. The Army by that time was down to one railroad operating battalion, although there were several reserve units at the time. I have no idea what the current situation is regarding the Army's training or strategic thinking about using railroads for warfare.
The low cab may reflect on those areas in the world that have/had restricted overhead clearance so this engine was designed to operate anywhere on narrow gauge lines. I dimly recall that somehow the gauge could be readily changed on this engine within certain limitations.