add_action template_redirect not working for home page

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Be careful not to confuse the two query conditionals.

Whether is_home() or is_front_page() return true or false depends on the values of certain option values.

When using these query conditionals:

  • If ‘posts’ == get_option( ‘show_on_front’ ):
    • On the site front page:
      • is_front_page() will return true
      • is_home() will return true
    • If assigned, WordPress ignores the pages assigned to display the site front page or the blog posts index
  • If ‘page’ == get_option( ‘show_on_front’ ):
    • On the page assigned to display the site front page:
      • is_front_page() will return true
      • is_home() will return false
    • On the page assigned to display the blog posts index:
      • is_front_page() will return false
      • is_home() will return true

Reference:
https://developer.wordpress.org/reference/functions/is_home/#usage

To force visitors (not logged in) to log in when viewing your front page, try changing your conditional statement to this:

function members_only() {
    // Check if user in not logged in and on the front page
    if ( ! is_user_logged_in() && is_front_page() ) {
        auth_redirect();
    }
}
add_action( 'template_redirect', 'members_only' );

I wanted to force all frontpage views […]

If by “all frontpage views” you meant the entire site, and not just your site’s “front page,” I recommend you install the Force Login plugin to easily and simply accomplish this.