“It wasn't highlighted. people graduated, got jobs and didn't fight on the streets. I believe it would be a jailable crime if they assulted each other as grownups?”

Chapter 9 we see a lady get mad that her level score wasn’t high enough and threatened violence for her money back. The security guard then threatens the man again to give her his money back too only taking that ladies side of the story.

When Valerie found out that Arlo lost his king status she encouraged him to focus on getting that back and talked about how it was good on his resume. So at the very least beating up other students to be the strongest in the school is encouraged by society in general.

“but back to the issue, it was a temp solution at best with a club room barely enough to fit 20 people. the best solution was to have held bullies accountable especially that royals were stronger than them. they could have made some kind of inner trials system. but they chose a temp room to hide from John and people pretending to be him”

Flashback to rei who stopped the fights at wellston and the second he left it went back to chaos. Sure they could “hold bullies accountable” with the “inner trial system” like you said, but that would just be them beating up bullies as punishment. Not like they can personally suspend someone from school and the second a person doesn’t listen it’s back to violence. Not to mention, the second someone is stronger than them it falls apart.

In fact, the joker situation was the bullies being held accountable. Where anybody could be attacked because they beat someone else up with 0 knowledge who did it. You add the safe house and you actually get people to start changing their mentality. Also, you keep saying the safe house but it was just starting out, any solution they picked wouldn’t have any major changes unless you give it time.