Fangio was hired Thursday to replace Joseph.
According to ESPN, the Broncos and recently appointed offensive coordinator Gary Kubiak had an impasse in philosophies and a mutual change of heart.
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The team had discussed Kubiak returning as the offensive boss but his desire to bring previous staffers with him and philosophical differences led the parties to decide it was not a good fit at this time, according to sources.
The Broncos have reportedly been blocking teams from interviewing Kubiak, a decision that may have had major ramifications on the Atlanta Falcons' search for an offensive coordinator.
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Ian Rapoport of NFL Network reported that the Broncos want a "new age, innovative" coordinator for the offense and Kubiak wasn't quite on board.
Shortly before his news conference to introduce himself as the Broncos' new head coach, Vic Fangio met with Gary Kubiak about a possibility.
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The Broncos ended up picking Fangio, who is coming off wildly successful runs as the Bears and 49ers defensive coordinator, and it certainly sounded like Fangio was open to the idea of Kubiak as his offensive coordinator. The Broncos are seeking permission from the Pittsburgh Steelers to speak with Mike Munchak about coaching their offensive line.