The YouTuber GrandTheftDiamonds discovered the hidden system while looking at the game’s SQL files. He penalized the wizard who used Unforgivable Curses by taking points out of their common house.
Avada Kedavra, the killing curse, removed 100 points from the player. Imperius removed 50, and actions such as extortion and bullying removed 50 and 25 points, respectively.
Only a few situations gave points. Attending classes rewarded you with 10 points and joining clubs gave you five points.
Additionally, it seems that Hogwarts Legacy also had a reputation system, with rankings that rose as the player interacted positively with other characters. This was also not included in the final game.
Via IGN