You cannot report an issue unless you are directly at the exact site on a route, which is dangerous.
Allow users to report an issue up to 2km past the site of issue. This allows time to safely pass whatever it is you are reporting.
This suggestion box is for Waze Map Editor suggestions. It sounds like this suggestion should go in the Waze app suggestion box
LostInMyMaps - Volunteer Editor commented
This would be a complex UI change and would open the hazards reporting to abuse. Being able to report from your current location provides some integrity to the report. You can also use Google Assistant / voice controls within the Waze app to report hazards as you approach them.