I see a lot of comments like this about telecommuting, where it's implied that telecommuting was the problem, when it may have just been a coincidence.
That said, maybe telecommuting was the problem here. But in any case, it bears some thinking about. There must be some people whose behavior would be better if they had to come into the office. Conversely, there must be some people who behave better if they get to work remotely. Not sure which category your guy falls into, but like you say, maybe people preferred him at a distance.
Yeah telecommuting probably enabled him to be.. who he was. And yeah, it's entirely possible if he had come in every day (as annoying as that would have been) we would have been able to call him on it more and either have him fall in line or compel him to take his BS elsewhere.