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Imagine all the people... equipping bio-coded weaponry.
Still, it's a quick way to get rid of them and I've done it a number of times just to clear space.
Even if you could sell them, it's generally not worthwhile to sell weapons. Weapons have pretty high base market value, but a very heavy trade price penalty, meaning sitting on a stockpile of weapons to sell is mostly just inflating your colony wealth and making the game more difficult for marginal silver returns. Smelting them down into usable resources is generally an immediate benefit. After I grab a few basic weapons for my colony early game I usually set everything that NPCs drop to be immediately smelted or destroyed.
The main purpose of the biocoded mechanic is to prevent you from jumping too far ahead in tech or wealth by, for example, popping open an early ancient danger after placing some cheap traps and looting all the high tech weapons they were carrying in the caskets. You can still get lucky and find something usable, it's just no longer a massive payday now that the occupants were mega-buffed around the same time to always have solid stuff. Before biocoding most of the people in caskets just had like synthread clothes and no gear, and there would be like 1-2 armed pawns in the group to deal with and loot, now they are almost always all armed and geared, and without biocoding the wealth jump would be pretty massive (more so than it already is).