My copy of K&R already has unsigned modulo arithmetic: "unsigned numbers are always positive or zero, and obey the laws of arithmetic modulo 2n, where n is the number of bits in the type." So if it changed it was before that, but don't think so.

I get your argument about the conversion order, but I do not buy it in terms of language design. You also do not want to go to a quotient ring implicitly, so I do not agree that this conversion direction would be more "correct" for implicit conversion either and from a practical point of view the C design is defensible.

I think the motivation originally was merely to expose the common capabilities of the hardware, nothing more. What we miss from this perspective are polynomials over F_2, but nobody pushed for this too hard so far.