This is the case for all carriers. You can still report spam on your phone instead of forwarding the link to 7726. https://www.koodomobile.com/en/help/report-spam
The point of reporting it to the carrier is so that they can take their own mitigation measures, which are more effective than a simple number blocklist maintained by a single phone.
It is pointless to block SMS spam on your phone alone. The scammers robodial (or robo-send) bulk SMS/MMS and randomize the sending number every time. None of the scam messages will ever come in from the same number, so your phone blocklist is just a massive list of ghost numbers that doesn’t actually stop these scams from getting to you.
Data/vox networking engineer, 25 years.
Phones increasingly do not have a simple number blocklist maintained by a single phone. Samsung and Pixel also take mitigation measures, which happen to also give you the option to block the number. But indeed, blocking is fairly pointless, as it is randomized and spoofed.
Unfortunately, MilkyWay is still correct that the MMS limitation is not a Koodo thing. 7726 is a shortcode for all carriers, which forwards the message to your specific carrier. It was started by the GSM Association in 2010, with carriers having the option to sign on.
To be honest, I don’t know the best way to request 7726 be upgraded to accept MMS. If it should be reaching out directly to the GSM Association, or asking your carrier about it. If you like, I can flag a rep to look into it.