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Can someone here who is responsible for creating such vacancies or anyone who knows clarify about why they have this condition?
1. They dont want to deal with complex legal, immigration and employment laws. If you are a US company, you can just deal with IRS and state laws.
2. They want you to be able to easily travel to headquarters if needed. Much easier if you are in the country.
The reality is that remote hiring is awesome but there are legal and HR related risks that most companies dont want to deal with.
I worked for a company that had some major banks and financal institutions. Anyone working on their systems had to be a US citizen, living in the US (even the european banks required that at times).
I was actually involved with one customer who I happened across some strange monitoring setups and it turned out it was the remnants of a company they used that was based outside the US / Europe when the company was expanding quickly. This outsourced company could not explain why they did what they did and after an internal investigation / consultation from legal they realized how little leverage they had with this outsourcing company (pretty much none). It could have been incompetence, but from what I saw the setup was far from something you'd do 'accidentally' or something you would do to accomplish another goal. After that they reviewed a lot of their outside companies and laid down a lot of new US (and sometimes some local exceptions) only rules. Fortunately for my employer they had already established those rules for similar reasons / other customers had demanded it.
Also, the demand-suply for remote working engineers is way different, so it can be an alternative to relocting from abroad.
For me, it's down to timezones. On a remote job advert I said I'd consider developers in Europe due to timezone overlap and an American developer e-mailed in saying, "but what if you just naturally get up really early". I hired him, it works just fine.
Also much, (like a LOT), cheaper to get local lawyers to handle non-international things.
Easier to ruin their life - shaming someone in the US could be devastating to their entire future work and possibly family life. Knowing how / where to do such in other countries is not normal domain knowledge.
You also don't need a passport to travel to their place and punch them in the face.
When actually doing the work: It's easier to figure time zones, weather issues, and holidays as well.
Language / accent barriers cost time and are extra work too.
Given the above situations, work done cheaper over-the-border has to be re-checked by someone local for security issues / backdoors are more of an issue.
In my very small data points / experiences, ymmv.