About WasabiWallet, OP's concern is "taint". Wasabi's developers make sure that all UTXOs that enter their pool don't come from questionable sources. They merely want to protect their users from taint.
Except that there is no central list of 'what is tainted' and what's not, so even a 'clean' output by Wasabi's standards might be rejected from an exchange.
That's what I was asking franky1, "what watch list"? He's always there and invents something to disinform, and gaslight people, especially newbies.
It could be true that clean outputs from WasabiWallet might be rejected, but its blocking of outputs that were used in "illegal transactions" could protect its CoinJoin pool from sanctions.
Heck, some exchanges could flag a UTXO, exactly because it comes from a (Wasabi or otherwise) CoinJoin and thus is not trivially linkable to a real-world identity.
Exchanges can do anything they need to do to protect themselves from sanctions, but my debate is merely either you accept the trade off and mix through Wasabi, or you don't. I'm not debating whether nopara37 did the right decision or not.