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Only client mods not everyone needs to have.
Brutal Company for example is a mod that only the host should have installed. It varies.
Random example*, let's say the host is using a mod that doubles the amount of scrap that spawns inside the level. Since the host's game is the one that generates the level, it's generated to the host's specifications, which can be influenced by mods.
However the host couldn't do something like add in custom items, since that would mean players would have to load in assets that do not exist in their installation.
*I am not an experienced modder and may not be correct, this is only my assumption.
Of course you need mods to join a modded server. There isn't any information before joining a server to tell what mods they are running, so it essentially comes down to picking the main few ones every uses and try random servers.
Everyone uses More Company and that is almost a required mod to play Multiplayer now.
You just kind of have to look at the Mod description and see if it's Client-Side or Server-Side. Client side mods are only required by you, server side requires everyone on the server to have it in order to join.