As someone who has worked 10+ years remotely (based in South America) I think it's a combination of factors:

Supply and demand. Why hire remote when there's plenty of warm bodies locally? Most companies do not need, and cannot afford, top-tier talent. Labor shortages are a myth.

Managerial incompetence. How many of the managers have any experience managing a remote team? Do they know what to do and what not to do?

Remote is frequently seen as synonym with "cheap, sub-par foreign developer" and there are many good reasons companies avoid that.

IMHO, remote-friendly organizations will prevail. The ability to hire from a much larger pool of talent and save on office costs gives them the upper hand.