- Harder to join team for new members
- Harder to learn field for novices
- Lack of unit cohesion through informal interactions
- Lack of access to equipment and tools necessary to complete job effectively
- Lower social interaction
- Risk of underworking
- Risk of overworking
- Unending distractions
The list goes on...
The interactions that take place when humans are next to one another is irreplaceable by current technology. Actual bandwidth to exchange ideas is lower.
I know this is going to bring a lot of bitter downvotes, and I accept that, but the reality is WFH failed as a universal, "Everyone can do this." idea. The upsides are all for the employees, and the downsides are all shouldered by the employer, the one with the money, the one who creates and justifies the job, so it is ending for most. Not everyone! But most.
Specific to your team, I do think it can work remotely, and have run remote engineering teams. But (and this is a big but) it requires a specific personality for everyone on the team, and you must do a lot to make up for the loss of in person interactions, and I can totally understand orgs who either a) don't think they have teams with the right dispositions to handle it or b) don't think they'll be able to successfully execute on all of the many extra work involved in recreating some of the missing aspects of WFH teams.
Do you have conflicts? If so, how do they get resolved? Maybe it all works, but if any real problem shows up, I've found creating safety is a lot more difficult remotely. WFH can breed all of the nasty "snake pit" attitudes and behaviors a lot more easily when everyone (or even someone) is remote and therefore less interconnected.