Well yea. If you are staying in the lines of your employment agreement, you’re in the clear to do whatever else you want. I feel people are conflating all of these things into what this topic is really about. The problem here is when someone has two jobs as either reports the same time to both employers for payment, or agrees to certain availability and does work for the other company at the same time. It does not include hourly workers having a second job doing hourly work during different hours, or anything similar with Gig work. If you for example drove for Lyft and Uber, picked up 1 passenger for Uber and 1 for Lyft simultaneously, that would be an example of breaking the rules.
I’ve worked for a company that has been doing WFH for over three decades. It’s very clear when someone has two jobs. They are unresponsive, their work isn’t very good, and they take forever to do everything. This assumes they have two jobs in the same line of work. If they are going and getting a night job at Target or something no one cares if their work is fine.
I can’t think of anyone I know that doesn’t at least partially collaborate with their co-workers where their availability is key to their jobs. So doing work for another company during that time would never be ok. The exception to this would be subcontractors who are free to set their own schedules within reason. They are free to take other work, often required to do so, due to IRS rules, but individual contracts likely have the same sort of language where they’d need to be available during certain hours, or available for group meetings etc.