I guess what I am trying to figure out is how can a team be autonomous if you are telling them where to work and when to work.
Autonomous always means "autonomous within constraints".
Agile doesn't mean "developers get to do whatever they want."
"Let[ting] developers work wherever and whenever as long as they deliver" sounds more like Wild West individualism than team-oriented Agile, to me.
If there are opportunities for developer movement within the org, or requirements for coordinated work, then abiding by the org's expectations for work hours & locations is in the best interest of the team.
If my team were very unhappy with the situation, AND believed that they could increase their velocity if they were granted an exception from these rules (which, don't forget, there's a potential social downside within the org to being the "special team" that doesn't have to play by the rules), then I would do the following:
work 4-6 sprints abiding by the rules. Be sure to track your velocity.
quietly take note of any relevant issues that come up during the retros, both positive and negative. (I say "quietly" because you do not want to contaminate your data.)
at the end of this period, review the results with the team. Show the velocity. Share the related items that came up during the retros. Ask whether, given all that data, the team still feels they could increase their velocity if they were exempted from these rules. Ask for a fist or five vote.
don't forget the Product Owner or equivalent is part of the team for all these purposes.
If you get a strong consensus, then I'd go to management, present my data (including related retro items), explain that the team felt we could increase the velocity if we were exempted from these rules, and ask for a 3-4 sprint period during which to do the experiment.
They might say no. Then you gave it your best shot, and the team has to live with it or go find other jobs.
They might say yes. Then you get to do the experiment, and see if it proves your team's hypothesis.
They might give you a conditional yes: eg, you still have to comply with some of the rules, but you get more flexibility to do the experiment. Then you can go back to the team & see if they still think they can increase velocity under those circs.
Most importantly, make sure nobody's gaming the system. IE no slacking off during the control period, or heroics during the experimental period.
And then you'll see what happens, instead of being caught up in trying to prove that management is wrong. ;)