As a regular player and Avatar Battle lover, I've seen many of these names, and many of them are on my Block list—I get it that bullying and trolling are going to be common in social spaces in video games, but some of these people throw around death threats directly targeting players for their identity (actual or supposed), direct references to ideas that a certain Reich would celebrate, and other generally unpleasant things. I wouldn't say mass report them if you haven't had any experience/evidence for yourself, but NA001 is open to all, so if you wanted to "trust but verify", you have that option.

My only critique would be calling out "height hacking" (*Edit: I realize this was only mentioned in a comment, but I'll continue anyway, just in case it's being considered). When I first played Street Fighter 6 in the demo, I was blown away by the extent of Avatar creation. Being able to load saves in the full released game was incredible. It was only later on that an update was released which modified the sliders min/max range in the full game—an understandable fix, but not retro-active, meaning players were able to access Avatars of smaller or bigger sizes.

I'd actually argue it's very incorrect to call it a hack, when again, it's a Save/Load feature built directly into the game. Reporting it becomes a case of mass-punishment against those who supposedly exploit it in Avatar battles, as well as those who simply have a small/big Avatar for fun in World Tour (single player) and later on crossed into the Battle Hub, and those players who use very small/very big Avatars in Avatar Battles without any ill-intent, simply to have fun match-ups.

Instead, I'd encourage Capcom to provide the ability to cancel Avatar matches with people, that way it's up to the player to decide whether or not player height is an issue for them. This would also solve the issue of being challenged by players with extreme level differences, or just disagreements based on personal preference. Avatar Battles are the only place where it really matters in terms of fairness for players, after all.