I have done work both from home, and in the office, both have pros and cons in my opinion.
Home
When I've been working from home, sometimes it is easier to get distracted as there is a lot around me that I know could distract me, e.g. my own computer. It is also harder to get in contact with anyone from home as I can't just walk over to them, I'd have to send a message.
The benefits of working from home are pretty big though in my opinion. I would be able to get out of bed later and sleep better before work, spending next to no time getting to and from the office. I may also be able to live somewhere further away from work, in a nicer or cheaper location if I don't have to think about how commuting would be.
Office
In the office, sometimes there is so much going on that it is very hard to focus on anything related to my work, and all I can think about is other people's conversations and what they are doing around me. However, when I do need to discuss something with other people, being in the office makes this easier than a teams call would be.
Going to the office also helps me to get out of the house and actually see people in person, which realistically I would not do anywhere nearly as often if I didn't have to go to work. This likely makes me feel better than staying in the same building for the majority of every day would. Commuting to and from work gives me time to prepare for the day and wind down afterwards, which I wouldn't get if I was working from home. It does take up a lot of time though, and if I was further away from work it would also take a lot of money to drive or take public transport every day. Its not like I get paid more for spending this time.
Both?
Either way, I'd say the right option is to allow people to choose what they want to do and to support them regardless. Given that I can walk into the office, working there is the right option for me, but I would likely feel a lot different if the journey in was anything harder than a 30 minute walk.