Local government mostly represents native San Franciscans who, understandably, do not want to give up their home so that "other people" can live there (even if, by utilitarian standards, more of those other people can live there).

Folks who moved to the Bay Area in search of employment in tech (both immigrants and Americans who are not "native San Franciscans") who desire more housing are not always represented in local government. (In some local meetings, folks shoot down your opinion if you aren't born in SF.)

For CEOs/management, telecommuting and remote sites can make your company less nimble / competitive. Remote workers get left out of "serendipitous microkitchen discussions", and coordinating across sites/time zones is more work than just having one big all-hands in one big campus. (Can be mitigated by starting with a remote-first culture, but this is very hard to bolt on to an existing company.)

Finally, companies can't exactly reduce their hiring (number of roles) or salaries in collaboration with their neighbours to reduce housing prices.