Not to get all pedantic but a 37mm Flare Launcher is a novelty device often fashioned to look like a 40mm grenade launcher. It’s not a grenade launcher, and anyone who goes through the trouble to fashion explosive projectiles for it is so far off the reservation when it comes to breaking the law that the mere act of owning a trigger-actuated tube is probably the least of their crimes.
I hate to be that guy but the hyperbole-driven sensationalism around this stuff drives me nuts. It’s like how every once in a while an inert single-use tube (sometimes prominently marked TRAINER) gets sold at a gun “buy back” and all the news outlets gush about how the police have taken an anti-tank missile launcher off the streets, because factual information takes a back seat to confirmation bias about things that we think are scary.