There is a difference between report and render. Report is intended do decide if an errror need to be reported to the system (your logging) and render is intended for your output.

The ModelNotFound exception is registered as an internal don't report so it will never be reported, see: https://github.com/laravel/framework/blob/8.x/src/Illuminate/F...

The ModelNotFoundException is indirect already rendered, it is transformed to a NotFoundHttpException, see: https://github.com/laravel/framework/blob/8.x/src/Illuminate/F... You can customize the output with blades, see: https://laravel.com/docs/8.x/errors#custom-http-error-pages

Another option that looks like your code is to use the the renderable function instead of the reportable, see: https://laravel.com/docs/8.x/errors#rendering-exceptions

I hope this makes it clear for you to see how the exceptions are handled.