First of all, I think it's great that moderation is displayed as a quick action in the "Current Instance" tab of the menu when you press the menu button (Esc on PC), along with a list of users.
However, I think the "Hide Avatar" feature would be much more appropriate than the "Clone Avatar" feature, for the following reasons.
First, When users use the "Clone Avatar" feature, it's usually when they're face-to-face with the other person's avatar which they want to clone, which is usually done by opening the menu, clicking on the other person to select them, and then using the "Clone Avatar" feature. Therefore, I don't think many users would want to use the "Clone Avatar" feature in a tab that only shows the list of users in the current instance.
and also, most of users don't allow their avatars to be cloned in usual, unless someone asks them to.
Second, It will help you finding users who suddenly play harassing effects or loud sounds.
We've all been experienced being surprised in public instance by someone suddenly screenjacking (making other users' screens shake, flash, etc.) or playing loud sounds.
However, these avatars usually have such a wide scope of effects that it's very hard to tell who is using them.(Especially while being screenjacked.)
As a defense against this, VR Chat has a "Safe mode" feature, but it's not the best solution.
You can use Safe Mode to protect your PC if you suddenly encounter an avatar that spews heavy particles, or if you experience inexplicable frame drops, but having to use Safe Mode just to avoid annoying users is like having to cover your eyes and ears in public to avoid someone making a loud noise.
So generally speaking, experienced VR Chat users will not use Safe Mode in such situations, but rather try to find the user who is causing the annoying effect and try to "hide avatar," "block," or "vote to kick" them.
However, as I mentioned earlier, it is quite difficult to identify this 'source', so users have to open the "social" tab and block users in the current instance one by one until they find the source.
This is a very cumbersome process that requires multiple clicks each time you block one user, and if the annoying effect ends before you find the source, you'll never know who did it, and unless you hide the avatars of all your non-friends or move your instance, you won't be able to avoid being subjected to the same thing unexpectedly.
Furthermore, since "block" feature blocks the other person's voice and the very existance, it's not a very pleasant experience to have to block and unblock most of the innocent users in the instance, one by one, just to find one user.
However, if you add a "Hide Avatars" moderation to the "Current Instance" menu tab, you can quickly skim through the entire list of users and see their avatars one by one without "unblocking" them. This is a quick way to react when you encounter a mysterious harasser, and unlike Safe Mode (which mutes all non-friends) or Block, it doesn't cause any psychological offense to each other.
For these reasons,I'd like to make an urgent request of replacing "Clone Avatar" feature by "Hide Avatar", or at least adding it to the "Current Instance" tab of the menu. Thank you for reading this long post.