Square Enix does.

Can you prove that? Empirically and undeniably.

Those are the standards you're trying to hold others so it's fair to expect you to uphold them yourself.

Square Enix saying they do is not evidence. The contention isn't in what one says but in what they do. Actions speak louder.

Logistically, it's not impossible for Microsoft to handle reviews individually. It's considered improbable due to how many reports they'll get. Forget, for a second, that everyone is a whimsical and innocent player who only reports when they are legitimately being abused and remind yourself that this is the real world, where people will bog down the report queue with leagues of useless garbage that, if to be individually moderated, all have to be moderated.

It really shouldn't be hard to take a look at the reports reddit moderators look at and then extrapolate that to an audience that is a few thousand times larger.

Besides this, you're also ignoring the more likely response which is that even if Microsoft could do it why would they? Why spend the capital on human-to-human moderation when they could just... not? Will enough people stop playing or giving them money for them to care? Hell, I haven't given Mojang a cent since I bought the game in 2009 so what were they getting from me other than my data, which Microsoft already has cause I'm using Windows fucking 10!