You need to stop ~ expanding to non-breaking space so this works

 lualatex 'test\string~report'
This is LuaHBTeX, Version 1.12.0 (TeX Live 2020)
 restricted system commands enabled.
(./test~report.tex
LaTeX2e <2020-10-01> patch level 2


the single quotes here are bash syntax on the command line, in other
command lines you may need to protect the \ in \string in other ways.

David

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