A report button is a trivial development add in and of itself. Development and customer service/account management that handle player interactions aren’t typically the same people or groups. At many companies I’ve worked for, they’re not even on the same continent.
Now, Fatshark may not want to deal with processing and moderating players in more detail than they already and just leave things to the Block button, but it’s not something that would a tremendous backlog to anything on the dev end of things, and Fatshark, like any company running a games-as-service product, already has a group already managing players.
Dota 2 for instance has an atrocious Reporting feature now, that punishes people automatically if X reports are submitted. I don’t even have to go into any detail, the potential for abuse is immense.
On the other hand, setting aside an extra employee just to process reports 24/7 is also something most companies don’t want to do.
So yeah, it’s a bit more complex than just adding the button - Unless of course you suggest a placebo fake button that doesn’t do anything.
At the current time, the few reports that come in are handled by customer service that also deals with all the other requests. At least that’s my understanding of it.