We've tried to convert offices to homes in the UK, and there's something particularly dystopian about the result. I think they have to make strange trade-offs to make the space useful, and its ends up being not very nice. I'm sure it's better than being on the street, but it isn't nice.
I grew up in the Sedgwick projects in the Bronx, and my grandma still lives there. She's been in the same rent-controlled apartment for 40+ years, which was affordable to her as a small business owner (hair/beauty salon).
She's now living independently at age 86, thanks to a social security check and a community where she's everyone's abuela. Rent-controlled housing made it easier to divorce her abusive husband and start a business back in the 60s.
The practicalities of the original design and trying to adapt it means these conversions often have limited natural light, limited fresh air, are made from hard, unbreathable, manufactured materials, are very 'liminal', have bad acoustics. Have you read the theory of 'sick buildings'? Homes made from office space seem to end up very 'sick', with an impact on people's mental and physical health, and increasing isolation.
not the person you are responding to, but I think they meant dystopian as in the "vibe" of the place. For example, many housing projects in France (where I live), tend to be basically large concrete rectangles, with very little green space. When compared to posher neighborhoods, with lots of trees everywhere, this can seem a little claustrophobic/totalitarian/dystopian. It feels like a less "human friendly" environment than you stereotypical suburb with front lawns.
I see where that's coming from, but to offer an alternate perspective the suburbs seemed "dystopian" to me at first - we moved upstate for middle/high school. The same 6-8 Stepford model homes on every street, strip malls filled with the same 10 stores (Walgreens/CVS, Costco/Walmart, etc), people dressed VERY similarly, and nobody walked anywhere. The teens in my suburban high school seemed way less happy and did more/harder drugs compared to the Bronx.
I'm not saying the projects were lovely. The elevators smelled like piss. But public housing - even ugly public housing - was a huge part in enabling two generations of single moms (my mom + grandma) to raise their families, start businesses, and thrive.