Would be better if a patch cleared them. Lots of times people trading don’t know they were given a modded item, especially if it seems like it could he legit, e.g. Lucky 7 having digiclone swap reload isn’t a legit anointment.
But honestly, you’re better off grouping with safe partners anyway. Pick people here or lfg on a discord of trustworthy players. I’ve rarely had success on matchmaking in any game.
MS already has a function to report users on XBox, which you are free to use. And for clarification, one of the reasons discussion of modded items here is off-limits is precisely because getting those things on consoles violates their respective TOS/TOU.
I’ll ping the community manager just so they’re aware of this (if they aren’t already). Realistically though cheaters are gonna cheat, so I second the suggestion of not playing with people advertising such things, and using the forums to find like-minded individuals to co-op with.
Closing because there really isn’t much point in discussing this further here.