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Could also be that Yama's Bankai is that powerful, seeing how in the TYBW Yhwach opted to steal and seal away Yama's Bankai as opposed to fight it. Although, we don't know anything about the encounter 1000 years ago so there's no concrete explanation to how Yama won.Yhwach is quite arrogant. There are plenty of cases in fiction where characters should be using certain abilities or methods to win but they don't for some reason or another.
Yhwach started the fight against Ichigo not using the Almighty even though it would have been better just to activate it from the beginning.