Summary:
“The root cause of the issue was that two cloned wallets (most likely created by copying the same wallet.db file) both sent the same cloned UTXO to the blockchain, which resulted in incorrect cut-through processing and ultimately to an invalid block.”
Therefore, it should be banned to have two unspent outputs are equal at the same time, to avoid confusion.
In Grin all UTXOs must be unique and we enforce this at the consensus level.
Note: We do allow duplicate TXOs (just not UTXOs). An output can exist, be spent and then be added to the TXO set a second time. But Grin requires a strict ordering of these events and the two instances of the output cannot exist in the UTXO set simultaneously.
Beam appears to allow duplicate outputs and I believe they state there are good reasons for doing so. But this is arguably not in line with the description of MW from the original paper.