By and large yes, people returned to the office however a lot are disgruntled and exceptions to work remotely largely depend on your manager and their ability to push that up the chain as Elon is meant to approve each exception personally. (in practice most of the full-time remote employees already had such exceptions but some newer hires during the pandemic weren't hired under that regime).

However a lot of folks quit but it has less to do with the remote work policy and more to do with a massive options cliff that occurred recently. Once the golden handcuffs came off a lot of folk figured it was time to move on, which is fair given the hell they went through to deliver 3 and Y + the 10x appreciation in their options.