Idea

https://minecraft.fandom.com/wiki/Java_Edition_1.20.2

Is it possible to disable the skin and ID reporting?

Reasoning

This is a F*CKING BAD content in Minecraft.

Other Information

No response

Maybe you can disable it client-side, and make the server require all client install the same mod when join.

Even then you must consider that usernames and skins are public data, which don't need signatures to verify.
Therefore they can be reported through any server, online, or even without a report if they get caught in some dictionary match or some skin inspection by Mojang.

Well, what exactly do you expect the mod to do against it, except hiding the button (for which the current toggle will still probably work)?
You could just use a nickname or skin changer plugin on a server, or some cosmetics/custom skins/titles/pronouns mod on a client.

Banned usernames existed before as it is trivial to do it with a dictionary match, and some servers already banned people for offensive skins.

Since this CANNOT make you get banned (this just tell you change your username or skin), and server admins also dislike offensive skins and IDs, this feature is not important.