Not unusual in environments with security requirements, as many places don't want code leaving the office/datacenter if they can help it. Some places do it for performance reasons too, as they can just pay $X per hour/month to get devs an instance that's 10x faster than the corporate laptops, and if they break it, they can just generate a new one.
I interned at a bank once where everyone was on Citrix, which was pretty good (they were paying a lot for it to be really good, though).
