We can't claim to know it left them with "bad" employees. I think there's vanishingly little evidence that recruiters actually go after the "good" employees effectively -- I'm pretty skeptical that a pro recruiter actually gets you better employees, they just make the process of getting employees way less stressful. We also have no reason to assume that a good or bad employee is correlated in any way with caring about not returning to office -- it's possible very bad employees are just as likely to quit as very good ones. How do you even tell good from bad, anyway?

What this "return to office" stuff definitely DOES do is preferentially retain the most obedient/desperate employees. Which may be part of the goal, along with low-key downsizing.