1. People simply aren’t used to it yet. The self discipline part, knowing when to work... and when to stop too.
2. You do need some sort of dedicated space. I’ve been working from home just fine for 20 years but I have a separate room for that.
3. Especially in tech, management may not have the knowledge to judge productivity. Measuring time the chair is filled in the office is much easier than evaluating a developer’s work based on just what they do.