I've only been able to work from home for a little bit during this pandemic, but it was certainly interesting to experience. I did enjoy it a bit more all around, but that's also because it freed me from a few restrictions at work (such as not being able to have a phone on me) that sometimes felt like a bit of a pain (needing to coordinate with someone quickly becomes a chore without easy access to your phone).
One other aspect that I liked about it is that I prefer having a pretty good computer setup at home, so if I can utilize some of my own setup, it's likely far far better than what I get at work.
I'd say that the coordination is a mixed bag. I do like that meetings are online as one nice benefit is that I can just type instead of talking sometimes. I find that typing takes longer but avoids any hearing issues and may sometimes also allow for more time to really get my thoughts out. Although, you do sometimes miss out on that more dynamic, in-person conversational flow.
Although, if we're talking strictly about software development issues, the one biggest aspect that I could think of is just having access to a proper representation of your target platform. For example, if you're writing standard Windows-based software, that's not too bad to handle at home as you can likely test that right on the development machine. (Albeit, you should usually test on a non-development machine to ensure proper library inclusions in deployments. Been bit by that bug before!) On the flip side, if you're writing integrated/embedded software, you may have a harder time being able to bring that home if it's possible at all.
In regard to something like working on an Xbox game, I wouldn't be surprised if a good chunk of that could be tested on Windows given Microsoft's use of standardized libraries across Windows and the Xbox platform. Albeit, something like that wouldn't be considered a perfect test, and you'd still want to use something like a dev kit to ensure proper operation. (Especially if you're testing platform-specific aspects.)