If tamriel did have a industrial revolution and thats not possible, then it would just be fallout and there would be no point in have a elder scrolls game.
Well, the Industrial Revolution is pre modern, or the beginning of the modern era. Depending on how you want to look at it.
And Fallout is...post modern/apocalyptic.
Pre Modern had functioning society and culture
Post Apocalyptic does not
Pre Modern used cavalry and swords as well as firearms
Pos Modern...well it's post modern
Also why would they not have an Industrial Revolution? Somehow they figured out how to make steel weapons and armor, before that they probably used bronze.
As we know from Dawngard they figured out how to make crossbows.
I'm sure some technically savvy researchers explore Dwemer ruins looking at their technology and how to replicate it.