They could be working from home and a neighbor peek through the window and see what you’re working on.

This is a joke, right? RTO won’t stop this “attack” either. Since we are looking at extreme situations, what’s to stop an attacker from using a high powered scope and peek at an executives computer? In an office environment you have plenty of targets to choose from and exfiltrate information.

Also, this is easily defeated by privacy screens. So this is a non-issue.

Also that VPN isn’t worth a damn if someone can get into your home and gain physical access to your device

You are right. Which is why multiple layers of defense is needed. VPN is just one layer, albeit a very poor “security by obscuration”

Ways to combat this is have data encrypted at rest, and in transit. Modern computers/OS have the ability to encrypt all data at rest. If computer is stolen, attacker can’t do much without the decryption keys. Also, thin clients (VDIs) can be used to further reduce chance of compromise of physical device. Data does not leave the secure data center of the firm.

Also, having applications / endpoints secured by MFA will help in reducing possible infiltration.

The only attack vector I can think of that will defeat these measures is a person held with a gun pointed to their head but this is why having multiple persons to confirm an action will help reduce the impact of one person.

but offices usually have a security system with alarms, cameras, and sensors

All easily defeated and poor security measures with the right motivation.

usually have stronger doors and locks

This is poor security as well. Perhaps even security theater. Unless the doors are bank vault level lol

None of the points you have given are valid in this digital age. A forced RTO is pointless.