There main problem, at least in my experience, is that there's a direct conflict in it

- There are people that work better from home and get more done there

- There are people that work better in the office, with people around them

Regardless of which you pick, you're going to make one of those groups less productive.

I do agree that some people who want one thing but work better with the other. It's on the manager(s) to figure out which works before; for each individual and for the team.