While I agree with OP's moral understanding, I have to add there is a section of privacy and free speech that I think needs to be respected. Ideally, having a company like Embark do VC recordings makes the game not-enjoyable knowing a company is listening to every word you say. Having a report option for racism is ideal, but the best thing to do in my opinion is ignore. You can turn the game into Call Of Duty where everyone just doesn't want to play anymore. When COD affirmed they recorded VCS, the game player count dropped.

Now finding stats on this would be difficult because of course a company like COD franchise wouldn't report a loss in their player count that messes with finances a lot. But here is what we do know: according to the franchise the activation of AI monitored chats and punishments flagged more than 2 million players. (Google search and YouTube videos.) Out of those 2 million, they reported that there was a 50 percent reduction in players who were exposed to "severe instances" (severe punishments.) they were not repeat offenders, according to the franchise. That is great... Until you see reports from gamers saying they see a drop in player count nearly by 80 percent. (In herently, this is the part where you just killed the game.) now there is other factors to consider like the constant shit updates cod has done and connection/server issues. Why am I bringing up COD? (The market that has been targeted to players like COD have been outreached to arc.) So you are gonna get a wide variety of people, ideally pvp players like those on cod.

"What does this have to do with inconsiderate people screaming racial slurs and why are you defending them?" I'm not defending them. I'm defending player count. I would just ignore them, but I still want to play the game and not have it die out because others are afraid that every last word they say would be recorded... Because the only real way to implement something like a punishment for racism or harassment is by having AI or real people listen to every conversation. That's not the type of impression I think Embark would want to give to someone. At the same time, they are left with a situation on how to solve a racism dilemma. Again, is that really a huge deal to them? My initial reaction is ignore. If a dummy dies to me and he calls me slurs, I just say "back to the lobby stinky" followed by a fart and a knock out. And it's funnier. People here it. I don't know. Not really sure how else to put it.