Hmmm, I think your second example is very reasonable but not so much the first.If you have an employee who is WFH and takes her kids to the pool on a regular basis and then makes the decision to do work instead of making sure her toddler doesn't drown then you have a very irresponsible person on your hands and I wouldn't want to have anything to do with her. If she is the type of person who makes the decision to receive money and then deliberately decides to not do the work that she is paid to do and hide it from her employer, then that is stealing and I wouldn't want to have anything to do with her.
ie. if she is not doing the work she is paid to do then yeah of course thats not on, again whether at home or in the office.
But if she is getting all her work done to the required standard while juggling things and doing stuff you personally find irresponsible in her personal/family life thats neither here nor there for mine, none of your business really as long as the work is getting done.
(FWIW I'd agree that example of working while her toddler is in the pool is pretty whack, not even sure how she'd get away with something like that - I was pulled up once by a lifeguard at a public pool for looking at my phone will mine was in and he's 7 ).