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I wouldn't go so far as to say it is a surefire sign they are circling the drain, but I would agree the RTO mandates are vanity decisions. If not the vanity angle it screams that the leadership does not trust their employees or they don't want to invest in the architecture required to make WFH feasible.
Realistically the mandates are due to tax breaks that the company gets for having a certain number of seats filled each day since these employees have a chance at fueling the local economy by eating out or getting gas.
Either way it is a bad look.