#People Are Able To Transfer Progression Between Servers
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Why do you think this is cheating?
That seems to be an intentional mechanic so that we can play together with friends who may sometimes want to play solo.
This is intentional and Windrose using same mechanics as Valheim for example. The possible solution if devs add some sort of character bindings to the server (server-side setting) or there'll be similar mods from community like in Valheim to achieve this.
While I certainly understand the concerns about cheaters, being able to go to your solo world to farm mats to bring to a busy server is very useful. If we're constrained to only mats on the server's world then competition for those resources is pretty tough. Especially with having to wait for ores to respawn, for example.