Using higher heat to raise lower heat is just the most simple case.
But purpose isn't relevant to this constraint, it is a physics constraint. Regardless of purpose, you can't extract useful energy from heat without a heat difference to work with. (And without a heat difference, even "heating" with heat doesn't do anything.)
But I don't really see how that is relevant to the question of using waste energy to heat homes. We don't have ideal Carnot machines so there's always energy wasted, which most of the time is still good enough for residential heating.
The conversation was about harnessing energy, from heat, in orbit.
Heat pumps take energy to move energy. But you can't power the heat pump from the heat it is already pushing against the heat gradient.
Waste heat can be used, if there is a difference in heat to work across, but not if there isn't. A datacenter in Antarctica could recover energy from waste heat, against the freezing outdoor temperatures.
In orbital systems, the problem is getting rid of heat, so there isn't some cold place to use to create a heat gradient and harvest energy. Space is cold, but particles are so diffuse they have little heat energy capacity, so essentially a heat insulator, and not useful to create a gradient. Thus the use of radiators.