Yes it absolutely is and it spoils it for everyone, but it's super hard to filter that out. One can be a super performer with a great resume and still just not work at all when it's from home.
Why does it spoil it for everyone? Is there some reason they can work in an office and be more performance without having to hire someone to sit on them? Aren't they just bad employees wfh or wfo? I think the solution is just be a good manager.