The instance seems to be mostly right wing trolls. I know defederating is unpopular but I don't think much is to be lost in this case and it can save the mods some headaches.
Edit: the response on exploding-heads.com to my reporting of transphobia. Courtesy of the "second in command"
My username shows @Difficult_Bit_1339 to you, so we're on the same instance. If it had @lemmy.world then I would be a user on the lemmy.world instance.
If you choose 'All' instead of 'Local' or 'Subscribed' then you see everything that exists, yes. I wouldn't recommend that since it is an incredibly spammy experience. That being said, you can block any community like so: