[sokoloff]

Speaking as a manager here, what am I supposed to do when a valuable on-site employee approaches me and asks if they can transition to full-time remote?

If I say yes, I get skewered later when people on both sides aren't adapting to the new situation.

If I say no, them I'm a do-nothing windbag who can't feel like anything is getting done unless I can physically see the people typing and clicking.

If remote work is the minority situation, you're going to see challenges. Even if it's the norm, there are decisions that are time-sensitive and you're going to sometimes be dropped (same as if you were on PTO that week; you're just more exposed to it as a remote worker in a predominantly co-located team).

I have teams all around the world; even with that, we still bother to move desks to put squads all together in the same location. If you agree with the latter practice, I think you have to give some nod that co-location matters, even if only a little bit.

[kartickv]

Why not do as I suggested above, which is to answer "Can I work remotely?" with "You can do anything you want as long as it doesn't hurt your work."

That way, you're setting clear expectations ahead of time.