The best answer comes down to two factors; oxygen and food. Oxygen levels were much higher 45 million years ago than they are today, and exposure to high amounts of oxygen have shown to drastically increase the productivity of the human body, so why not the same for animals. Second comes down to food. The more food, the more of an animal. The bigger the prey, the bigger the preditor needs to be or they need to be in greater numbers. When creatures like brachiosaure exist, it would understandable be difficult to kill it when small, thus animals that were larger would have better chances, or conversely animals that worked together. Of course, this is somewhat speculation and there could be other factors involved, but this is the simplest answer that makes sense.

There was an evolutionary trend among carnivorous theropods that the larger they grew the less they used their arms to grab the prey: If you can either inflict a deadly bite or grab the whole neck in your jaw, grabbing with claws becomes unnecessary. Two lineages took it particularly far: in abelisaurids, such as carnitaurus, the arms became vestigial and in some cases completely disappeared.

In a separate theropod lineage, T-Rexes, while much bigger than any abelisaurid and with a bigger head, did not have vestigial arms. Their arms, tho tiny, still had bones that locked into each-other and seemed to have muscle attachments. There’s been several theories as to why: This certainly meant that T-Rexes still used their arms, but how? The main theory is that juvenile T-Rexes had a different morphology as their adult counterpart. They already hunted, but much smaller preys, and with a different technique, so they would’ve still used their arms. On top of that, there’s the idea that adult T-Rexes might’ve slept on their bellies and their arms would’ve been useful to bush themselves back up.

Another reason for T-Rex’s large heads, in addition to their big jaws being terribly efficient, is that it may help with placing their center of gravity over the knees, which is useful to keep balance while walking or running.

arms were evolving to become vestigial

Keeps them from masturbating, allows them to transmute their sexual energy into raw power when not actively engaging in sex.

There were some articles last year that said they think T-Rexes had small arms so they don’t get bitten off when competing for food with other T-Rexes.