Yup. In many runs I've sold the buyer actually want to play with us, which is fine as long they dont wipe the group and know the mechanics. In fact some players are so good we kept them and made them sell with us as well.
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There are groups that hand over login information simply because it takes less time and effort. The margin of error for 7 manning is so slim that it's understandable. My group has been selling O4 for awhile as 7 though, it's manageable
That doesn't stop people from doing it. Handle the transaction off-game via discord, email, etc and it's untraceable
I don't think SE will ban others because of that, unless someone else reports it. I don't think they are tracking people's accounts to see if they are being logged through different IPs. At most the automated system will send a warning to their owner stating that they should change their password.
Sure it's impossible to 7 man ultimate, but it's also impossible to prove that account sharing is happening through the sale. IMO ToS aside, people who have cleared ultimate can have free reign to sell however they want. As long as there is mutual benefit from the exchange I don't personally have any problem with it, similar to how ACT is a widespread benefit to the raiding community but against the ToS I guess.