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It's possible to be VAC Banned in games during free weekends or when family library sharing.
There's no need for you to know which games they are vac banned from. All you need to know is that they have been banned in a game and the length of time since their last ban.
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I actually answered this originally in my first post, but then I thought I'd misunderstood the question after seeing other responses and edited it :)
They do.
However, these games are flooded with the most public cheats since they are free to play games with no cost requirement and this encourages those more likely to cheat opportunistically. *
However, the actual "satisfaction" for the cheat is also greatly depreciated considering the bans are usually much swifter* and, being free to play games, honest players dissatisffied with cheating behaviour are at greater liberty to quit and/or find a more suitable server to play on.
Also cheating in such games does not provide much real 'advantage', since there is ften a Pay2Win model involving microtransactions in-game purchases etc. whereby all cheaters are achieving is a faster route to discovering they need to pay to progress.
*The most publically available, prolific cheats around can be VAC-banned very quickly however, since there is little to no updating norparticular incentive for the cheat developers to even bother (these are typically freely available cheats) so no real advantage in any delayed ban.
_
The proliferations and abuse of the cheat potentials in these games, (Take TF2 for example) is a very useful tool, since whilst cheat developers can register accoutns to test parts of their cheat attempts, Valve are also able to amass data and habits of those cheats in order to spot trends and directions and capabilities in the cheat development processes thereby being more prepared for the 'developed' cheat once it has been "perfected" and "released"