[1] https://www.joelonsoftware.com/2000/08/09/the-joel-test-12-s...
Note that this really should be a recurring stipend. Nothing lasts forever; everything has a service life. I think a three- or four-year depreciation makes sense on a lot of these items, although this is probably something which should be considered an industry standard.
A cheap Ikea desk is perfect for my needs. It's a wood counter-top board and 2 adjustable sawhorses. Cost me about $200. However where I spent the money is on a good 5k monitor. With these 2 (and a saddle chair), I have everything I need for a workspace that is far more functional than an expensive modular furniture desk (ie. cubicle) with a low-res monitor.
I'm a junior engineer and I already happen to have a nice chair, computer, and monitor at home. my desk is a piece of trash from walmart, but it gets the job done. altogether, it's about $3500 worth of stuff if bought new. I wouldn't be happy to pay for all that in one go for work, but it wouldn't be an extreme hardship either. I would gladly pay that in exchange for permanent WFH.
In the before times, they would be put at a workstation with a $2-3000 desk, a $500+ chair, reliable Internet and power, and usually a new(ish) computer, monitor, keyboard, and mouse.
Those engineers don't have the income to get all those pieces for home use; they'll get a cheap Ikea desk and chair, a middling-quality monitor and keyboard, and if they're lucky, their workplace provides a reliable computer at least.
But even for 'overpaid tech workers', there are some tools of the trade you invest in for your own good, but the company should also provide the basics (e.g. reimbursement for things used primarily/exclusively for business).