Not GP, but many companies have a policy allowing employees to live in remote places, but if you live in the same city as the office, you're not allowed to work from home.

The idea seems to be that remote employees are expected to establish a little mini-outpost of that company within their own home, while local employees who "work from home" are more often than not really handling errands or lounging or whatever. It's a double-standard, but a very common one in my experience.

Thank you for the explanation.

Maybe it was about their home not being a good environment to work (spouse running a daycare operation for kids, whatever), not about the company policy.