If this is a reaction to a Covid announcement I also think people are scared of being locked in the office rather than fleeing from “whoever tested positive”
Shanghai is acknowledged as huge fuckup even internally in China. It's just that each province has a lot of latitude in implementing things - till they fuckup so hard central government feels loss of face, like with Shanghai :V
China is a big place. Those can both be appropriate at the same time. Especially when it's the authoritarian government that's the source of both worries.
Looks like a nice building, my guess is it would be more comfortable to remain there than to lock down alone in your apartment; especially when considering the company could get negative PR if your basic needs aren't met.
To be clear, I'd prefer not being locked up anywhere, but if you have no choice then at least the building with better amenities seems the logical choice. :)