People have been spreading this lie around online forever.
Death of Escobar was actually a bunch of tracks that were recorded for the original version of I Am, that was bootlegged and leaked back in '98. None of the songs on it were new with the exception of 2-3 tracks that Nas never finished. They were all in the vault because the label made Nas record mad new tracks for what would become the retail version of I Am, that we have now. None of this was recorded for Stillmatic. He hadn't even started up on Nastradamus yet.
After the songs got scrapped, there were bootlegs of what was being called DOE being sold on the streets. Dudes took mp3's of the OG version of I Am, and made up an album with the tracks that didn't make the retail album. Sony picked up on that and wanted to make a "real" version of that bootleg album to capitalize on the hype and the songs they weren't eating off of that were supposed to be on I Am. So they started trying to make an album based off the bootleg, but said they would add "new" songs that weren't on the bootleg. When that didn't happen, Nas ended up recording two more albums before the label decided to take some of the old joints to package it up as The Lost Tapes.
DOE was never a real album. That sh*t was a made up bootleg and title that Sony was too slow to catch up on. Then when they finally did, they tried to legitimize it by saying the album was coming with the same title as the bootleg, but the streets already had it and didn't want/need a retail. So they tried to clean up the situation and save face by dropping The Lost Tapes, with joints everyone already had for 4-5 years.