I don't know where you're getting your definition of virtue signalling from, but it's not about corralling opposing views to your own into a losing argument to prove you're right (which is what you're saying the dev has done here).
Virtue signalling is purely putting on the public record your moral standing on an issue to convey your own good character.
Giving the player an option to shoot a paedophile in the head (regardless of the paedophile's opinion) isn't virtue signalling.
Posting on twitter (X...
) that you're not buying a copy of Hogwarts because you want to stand in solidarity to with your LGBT friends is a correct example.
I could be wrong, but I just get the impression that you think that perpetrating child abuse in a fantasy environment where there are no victims, should not be considered a bad thing, and you don't like that the dev portrayed it as bad, and rewarded the player for shooting the pedo in the head?