Arc Raiders is testing a PvE mode because "a large and growing group" refuse to hunt each other
(www.rockpapershotgun.com)
It was originally supposed to be a coop PvE game, but turned into PvPvE along the way.
The PvE and PvP lobbies are basically like that already. I have carebear lobbies for solo and trios are pure PvP. People literally do naked runs where of they don't get the right spawn, they surrender and try again until they get the right spawn, then run straight there and loot, throw the thing in their safe pocket and surrender. The only time people fight arc in the PvP lobbies is if they are stopping them from looting the players they just killed.
Night raids, Hurricane, Locked Gate, etc. are all not eligible for PvE lobbies in the new system, and the loot value is reduced if you do PvE.