I think there's something to the idea of establishing a work environment. I have worked out the house far longer than COVID, and I've learned long ago that I'm an EMPLOYEE first and foremost, and for any other employee, the difference between dealing with me and someone in an office should be no different. Yes, with COVID we've had to make compromises, but if I won't have a dog barking on an in-office call, I won't have a dog barking from my home office call.
And that goes to wardrobe. I wouldn't wear a t-shirt and wrestling shorts to an office even if I could. I have a position of semi-authority and I am asked in many cases to be the "conscience" or "mediator" in my business, balancing differing concerns. I have to earn the respect of the people I deal with, and as much as I love Iron Maiden, wearing the latest tour shirt to a video conference where I'm driving the decisions on a $100M bid I think undermines my credibility.
There's also mindset; it's different for everyone I know, but for me, I want to and need to be in "work mode". I'm an officer of the company, and so my decisions sometimes carry weight. Making those decisions starts well before the call/video conference, and in part, for me, that includes wardrobe. I don't wear a suit every day in my basement, nor even a collared shirt, but if I have a day that is involved in the more corporate aspects of my job, I make sure I'm showered and have a shirt on that I would wear in an office was I there. I wear pants (though I will wear shorts more often than not, though again, they are not ratty gym shorts; I would not be embarrassed to wear them at a work outing for example).