Some of this is pretty simple isn't it? Especially the lawyers should understand. It is WAY easier and WAY less liability to have blanket policies, especially at a government job. Having no idea how good each of our FBGs are, I kind of assume you're "a-level" employees. MOST people are B and C level employees.
So while "as long as you get your work done" is the ideal policy, it doesn't really work for B and C level employees. And you open yourself up to disparate treatment issues, to general complaints, etc if you let some people have what is then viewed as special treatment. It's hard enough as is to get rid of government employees who aren't doing their jobs, and WFH just makes it harder. It SUCKS that this is also likely to force out some talented people, especially those "a-level" ones that are not easily replaceable.
As to the talent issue...I think this will probably cut both ways. I work with flag officers, military civilians (a lot of SES, but obviously their teams too) and civilian agency SES and 11s-14s. The most common things I hear from them, and from partners at my firm who exited to government and boomeranged back, are that they are saddled with underperformers they can't get rid of. That the other true believers and the mission are huge drivers of meaning, but the laziness/incompetence that basically gets rewarded instead of punished is extremely demotivating.
I just thought long and hard about an offer from DOGE when someone I knew took a senior leadership position there and pinged me. I think if I didn't have 3 more months of pat leave and 4+ months of "search" time after that, I'd have taken it. But that cost is too high. I think it's probably the most exciting place to be right now if you want to make a difference in some of these long-plaguing systemic challenges.