Why are you decompiling with most oldest version intentionally?
Object-Initializers cannot be expressed in C#1 because of the description method introduced in C# version 3.
It stands to reason that if you decompile with older version, it will not be able to interpret the new functionality.
Compilers that support C#9 can now add custom modifiers to property setters to enable new access restrictions.
//public int MyProperty { get; set; }
.method public hidebysig specialname instance void set_MyProperty (int32 'value') cil managed
//public int MyProperty { get; internal set; }
.method assembly hidebysig specialname instance void set_MyProperty (int32 'value') cil managed
//public int MyProperty { get; init; }
.method public hidebysig specialname instance void modreq([System.Runtime]System.Runtime.CompilerServices.IsExternalInit) set_MyProperty (int32 'value') cil managed
//public int MyProperty { get; internal init; }
.method assembly hidebysig specialname instance void modreq([System.Runtime]System.Runtime.CompilerServices.IsExternalInit) set_MyProperty (int32 'value') cil managed
modreq
in IL is Custom modifier
for member access like as public or private.
If you use compiler that is supported only older versions, it will not be able to resolve this modifier and therefore will not compile.
Similarly, ILSpy's C# 1.0 decompiler is not able to decompile this modreq as an init.
For a more detailed understanding you need to study the IL language.