Yeah, I think you’re conflating two things. Using uuencode (and later base64) to convert binary data to ascii, and using other software to convert images into ascii art. For example, here is the Lenna image converted to ascii art using the j2pa software (it looks right in the preview pane, apologies if it doesn’t post well). That particular tool might have been created in 2005, but others existed in the 90s.
xxdddxkxc;::::cclllllloollooollllollllllllc:ldxddddddddOX0ccclclllllcl
dxxdxxxdc;::::cclllllllllllllllllollllllllcc:odxxxxdddddOXkccccllll:'.
xxxxxxxdc;:::::clllllllllllllllllllllllllllc:ldxxxxxdddddOX0lccll:'...
xxxddxxdc;:::::cclllllllllloooddddolllllllcc:codddddddddookXKoc;......
xxocdxxdc,;::::cclllllllllooddxkkOOOkdlccccc:codddddodoooooxK0'.......
xl,:dxxd:,;::::ccccllccclllooodkOOOO000kd::::cdddocodoooooddc........,
c;;:dxxd:,;::::ccclccccccllooodxkO00KKKKXOc;;cdddo,,ldooodo'.......;ld
;;;:dxxd:,;;:::ccll:cccclooooldkO0000KKKKKXO;:oddo,.'cdddc.......'lodx
;;;:dxxd:,;;:::c:k::cclllllldkkkOOO000000KKK0coddo''ckKKX,......;odxxx
;:;:dxkxc,;::::clk:::cclllddxkkkOkkOOO00O00000kdxxx00KKKX;.....cdxxxdd
:;;:dkkxc,;:::::xxlc:ccloooddxxkxkkkkkkOOOOkkOO0000000O0O....'ldxxxxxd
;;;cdkkxc,;;;;:;kkdo:collooodddddddxxxxxxxkOO000000KOdoO....'odxxxxdxd
:::cdkkxc,;;:::;k0xoccllllloolc;,l::;,':kO0000000kdoclo,...'odxxxxdddd
:::cdkkxc,;;;;:::0kdclllllcc;''.,,,,':xkOOOOOOdllodxo,....'odxxxxxdddd
::;:dkkxc';;;;:::cKxlcllc:'''.,...,:okOkkkOO0Oc,:oo'......coxxxxxxxxdd
::;:dkkxl,;::::cc:Occlc;.'..''',.cddkOxxkO00KKk,.c:......codddddxxxxdd
::;;dkkkl,;::::ccl:ll:''.......;dxkkdodxkO000K0c.'l.....;oxxxxxddddddd
::;;okkkl,;::;:ood;,,,,'..'..'lk0xc;;c,:oxO0o:,,..o'...'odxdddxdddddoo
:;,,okkkl,;:;;cdc;'.',:.....'okkdc;::xdcldKd:c:...o,...ldxdddddddooodx
;;,'okOkl,:cll;'':;.';:,...,dklcodxxxxxooo0Odlc;..l;..;oxddddddooxOOOO
,,''okkkl,:c:;,,;:...'.l;.,dd.,lodxkkkxoolO0xol,..::..oxdddddoook00000
,,..okkkl,:c,:,;;c'..,:,.cdl.',cloddxxdllldKdo:...'o.cdddddddooO00KKKK
,,';dkkkl,;c','',:c.;.:c:o,..,;clooddddoodkkoc..''.o;oddddddoox00KKKKK
.'';dkkko;:c''',;,;:,oxl;....';clloolllooxdol...''.clddddddoolOKKKKKKK
..';dkkko,c;,.':::;:oxl,......';ccloolloddoc....,''cdddddddool0KKKKKKK
..':okkko':''..:;ccccc..........',cloodxxdc.....;,':dddddddoolKXKKKK0k
'..,okkko:;.'..,c,c:lc;.'.......';cllodddkxl:'..;,,colllllllcxKKK0x:''
ll;.ckkkdc..,','';,;cl;:'......''cllooodxkO00Kx:'''loooolc:c:xKKO;,,;;
'dd'ckkkd;....,..'';;ll,c.....':.cloooodxxkO00KXx..oddooooloxKK0:;::;:
.lx,:kkkd'....,....,;lccc''...:c'clooooddxxkO0KKXo.odooooloKKX0l;::;:;
.:x;:kkkd,........'',c;;.''..;l:;looooooddxxk00KKKcooooooldOKKo:;;;:;;
.,kl:xkko;.........;:,,'....;c:,looooooooddxkO0KKK0;;;;;:lxxKd,,;;;;;'
,:kd:xkOl,......'...,c;....,;,;looooooooooddxkO0KKKo::;,.c0xl'';;,;:,'
.,xkcxkOl.......;,'.,;,...,;cllllooooodooodddxkO0KK0;::cccc;;,;,,:c;..
..k0oxkOc...'',.,;,''.;'';cclllllooooodddddddxxkO0KKc;:clclc;,,,cl,..,