This makes me wonder—how much performance would you loose by taking a "distrusted client" approach, and only sending data that you want the player to know about? Could you make cheating basically impossible?
Valorant and Counter-Strike attempt to do this as much as they can, not sending information about enemies the player shouldn't be able to see. This is not flawless, though, probably due to performance or latency requirements.
Iirc, Warzone also sends information about non-existing players to suspected cheaters to attempt detecting aimbots.
I think the client also receives information about non-visible-but-nearby players for things like footstep noises. In counter strike you can hear a person around the corner running around, reloading, etc. and I think in some cases you can shoot through thin walls at these players. Even if they are completely obscured from view.