It's their organization. They are allowed to make decisions about what software their employees use. I'm a die-hard Mozilla fan, but I don't find this unreasonable.
Note that making lock-in features like this effectively proprietary to the Chrome browser is only possible because of the fact that it's the same company making Google Workspace and Google Chrome.
I absolutely see many problems with this and you really ought to as well.
Google and Microsoft shouldn’t be giving levers that bake you more into their ecosystem regardless.
Your corporate serfdom is not in question, but I disagree with that notion too.
I would say it's common to find dark patterns that involves ambiguity like the discussion we are having here. We can't know for sure but Google can increase the probability of being on their ecosystem.
The problem is Google appears to label this as a security feature. I'm fine with the feature existing, but it should say something like "require Chrome" or "block Firefox" not "require a secure browser (wink wink we actually mean Chrome)"