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Haha some people love to be a smurf, or MR is not the thing they interested in.
In the rare instance a cheat report is responded to by Capcom, rather than ban accounts, they just reset their MR, so users are free to continue using said cheats (of which there are a LOT of programs available to do it, supplemented with a large library of downloadable LUA scripts for situational responses on a per-character basis) without consequence. I see MR resets for the majority laundry list of usual suspects here on an almost weekly basis.
It's a major problem discussed quite frequently (and always peppered with nay-sayers, deniers, defenders and the usual raft of players with poor game-sense who fail to understand quite obvious tells and go-to exploits to bait out canned responses from cheat programs when the issue is raised). Worth noting is that the raft of programs available go far beyond typical auto-parry/DI/throw-tech responses which many tend to focus on as a point of argument - they are far more 'advanced' than that.
Despite this, Capcom have shown zero motivation to deal with the problem in a meaningful way. It's an absolute scourge in the Asia Pacific region, comically so due to how many of them are (and remain) active for such an extended period of time. It's my understanding a lot of European players have noticed an uptick in their use also. Friends of mine in both Japan and Singapore have exhausted their block-lists due to how many they encounter.
Join an Asia based BattleHub server and play some casual matches, it's hilarious.
I really hope the forthcoming update for the game addresses this problem. It's pretty bad and I implore Capcom to actually get their ♥♥♥♥ together as right now (in this region) private lobbies with actual players is the only way for me to enjoy playing online lest I find myself in a dull, repetitive, exploit-session to deal with people running this crap.
Uptick is a mild word for it.
Europe's Master ranks are infested with players using auto-react scripts. The subtle ones do it in do-or-die situations, others are completely blatant (perma auto-defend to everything mentioned, auto-jump and auto-whiff punish per case of move used).
It was already bad in SFV's days when everyone in higher Diamond/Master ranks, predominantly tournament players though, jumped on Clumzy and started lagswitching after the CPT went online during the pandemic.
And everyone was covering for each other when the fiasco of the first CPT in our region happened, when they also mixed in the EMEA region.
Now, I can tell you with 100% confidence that nearly every person in EU that you see consistently above 1700MR, and/or either streams or competes, has the scripts ready at hand. I've had people play-pretend at being AFK mid match even to activate their bs. And even on jailbroken PS consoles, nothing is secure.
On top of that, smurfs are -everywhere-. Barely 3-digit hour accounts left and right, since with 1 game key you can make up to 5 accounts.
Unfortunately Capcom (and a lot of other gaming companies) are completely detached from the issue, and don't care to invest into a functional anticheat, against something that is mostly noticed by the small relative percentage of "higher" rank players. Instead we hold online CPT qualifiers and send people multi-reported since Season 1 of the game, who have even been posting clips on social media "subtly" (not at all) showing what the scripts can do.
A partial solution could indeed be to open up the blocklists of players, but they won't do that and risk complaints about nonexistent matchmaking. Not until (and if) the issue becomes prevalent in the US and East Asia regions, which are the markets they care about the most :\
In general across gaming there's a rise on cheating and don't expect the modern cheater to use basic and obvious cheats, the cheats are more subtle and less obvious.