I mean it sucks but the place we’re at as a society is that home and work are the only spaces I regularly exist in. Not counting family I have exactly two friends and they’re the dudes that I play magic with during lunch breaks.
Like it’s anecdotal as it’s just my personal experience but full on WFH did absolutely socially isolate me and I got pretty stir crazy. I’d still probably take it given the choice because commuting by car sucks so much ass but it’s not without downside.
Edit: Like to be totally clear, I do think the thing being described in OP sounds like a net good but I just also think acting like there’s not positives and negatives is misleading.
Dense housing in/near city centers is exactly the kind of living situation that encourages social interactions outside of work. The person who is most isolated are the ones who live in sprawled out suburbs where the ideal is to never interact with anyone but your close neighbors (maybe) and you drive in every day.