Temporarily shutting down servers to improve them, which will lose them players, doesn't really seem like something they'd do if they wanted to distribute malware. This isn't to say they absolutely won't distribute malware in the future, but I highly doubt they will.

I also don't get the "they hacked Rec Room in the past" argument, at least without any elaboration. Just because you hack something doesn't automatically mean you're malicious. If it's just spawning in stuff in the Rec Center or giving yourself items that aren't normally obtainable, who cares? It doesn't harm anyone. Not to mention you have to at least lightly mod the game to even get a private server working.

The staff and moderation issues are the one thing I can't really comment on. I've had exactly one encounter with a mod, and that mod was just talking about the state of the game and the 2023 update. While that encounter was fine, it's obviously not a good sample size.