We do. We have like a dozen shared, beefy shell servers (varies, but think ~32 core not too old Xeon, ~256GB RAM, 1G or 10G stable network that's local to the office, TB's of storage and essentially unlimited on NFS) for devs (and more of the same dedicated for CI/CD).
We need this because the codebases are huge and take hours to build on a laptop (and copying across a home uplink would take forever too).
Homedirs are NFS mounted.
It's more cost efficient than spinning up an AWS/Azure instance for myself, and more limited resource efficient than spinning up a VM in OpenStack (both of which I do when appropriate). And it's very convenient team work wise.
There are (many, some avoidable but hard to fix by now) downsides for sure, but I cannot imagine doing this work solely on a laptop.