If they're selling them to a shady repair shop it's not to use on another vehicle it's to launder the stolen catalyst so it's coming from a "legitimate" source. Thieves don't carefully unbolt anything, they dive under a car with a sawzall and a metal cutting blade or an angle grinder, rip it out, and take off. A garage would need to cut and prep the stolen catalytic converter, cut the flanges off of the old one, weld it to the stolen one, and spend every night praying that none of their customers ever looked below their cars again because a used frankenstein catalytic converter will stand out and it's illegal to slap a used catalytic converter on without it being tested and labeled as such.
Why would they go out of their way to commit a felony that's much more likely to get caught than just buying the catalyst at half price to drop off at the scrap yard later? Also there's tons of vehicles that have been driven on a misfire for too long, improper mixture, coolant contamination, etc that can reduce the efficiency of a catalytic converter but not be immediately obvious. If a garage is doing this dozens of times there's going to be a bad catalytic converter that trips a P0420 300 miles down the road and any mechanic looking at it is going to know what happened after a quick chat with the owner. There's no way they'd get away with it long term, people are already distrustful of mechanics so being charged for a new cat and getting franken cat bolted on is going to get the cops involved sooner or later.