Different people with different social energy levels and so also different presence intervals, still see each other from time to time. Sprinkle in some nice fun non-obligatory team building activities.. everybody happy and productive.
Pre-pandemic I usually worked in open offices, and always found them horrible.
I found it insane the first job I had that companies preferred me to work in an open plan office, whereas I could do hobby coding without any distractions at home.
1) Is perfect for me. Though I would admittedly spend 90% of my time working from home, I'd never complain about having the option. 2) is pretty much as bad as WFO for me, in some ways slightly worse (no consistent routine, no consistent work environment, carting my laptop back and forth), in some ways slightly better, but overall pretty much the same.