Software engineers give substantially less code review feedback when not colocated (either remote or just in different buildings);
https://www.nber.org/papers/w31880
People are less productive WFH, and those who self select into remote work take an even bigger hit than those who prefer the office:
https://www.nber.org/papers/w31515
Previous pre-pandemic papers that I didn't save links to also found negative selection effects into WFH were significant.
If you believe the mythical man month, which all software engineers seem to, then productivity hits to engineers are very bad for the project since outcomes are not linear in inputs.
Anecdotally, CTOs I have talked to were all uniformly negative about remote work at their companies, basically all feeling that their teams were less productive than before the pandemic.