Having tried the "Added context" contributions, I think Twitter solved the moderation. It simply works. There's an abundance of free labor and it scales linearly with controversy/spread.
There is a dude who lives a couple miles from me who flies a large confederate flag and has a statue of Robert E Lee in his yard. I am happy that authorities allow it because that way I know not to interact with him. I’d rather offensive people be loud and proud than secretive and using subterfuge to advance their cause.
Does it? Because I've seen it used to spread all sorts of bullshit, including against Musk/X.
One case that comes to my mind when Musk wanted to make blocking to work the same as muting, and the false claim of it being against Apple's App Store rules was added as context.
If you mute a user, you will not see posts from that user but they can see and interact with your posts. If you block a user, you will not see posts from that user and they cannot see or interact with your posts.