Working from home, really does IMO require a Home Office, a space dedicated for work.
I know many people that are more productive at home, all of them have a home office. I know many people that are not productive at home, none of them have a home office, instead are using some Shared Space, like a corner of the living room, the kitchen table, etc.
If you do not have a dedicated home office then likely your home will be filled with distractions,
Living situations impacts this as well, if you lived a alone with no pets vs having a house full of roommates, children, spouses, pets, etc.
So from a Management perspective do they fire all the people that cant work from home, or require everyone to return to office? Or do they have different policies for different people then open themselves up to Workplace legal liability from either discrimination or hostile work place charges