Huh, how does Luigis
Cyclone do a lot of damage? If all hits connect it'll do 9% if fresh. I mean it's something, but not "a lot". Maybe you mean for what it is it does a lot? But eh, like half the time you won't get all the hits in anyway because you'll do it early to catch your opponent and/or land with it or to gimp them (though if it gimps the damage won't matter anyway). It can also be teched if on the ground if they get in tumble.
Always be ready for a potential
misfire if you could die to it. It can be really bad for the Luigi as well sometimes, though. If you just wanna go forward a little while staying safe since you're so far out and then get a misfire it can be punished super hard for free if the opponent is at the end of its travelway. I did sometimes intentionally not sideB offstage of fear of a misfire and getting hard punished (if it would cost the game), so its randomness is not just a good thing.
Idk why people are scared of a
Luigi that's offstage. If he still has his doublejump and could make it back with doublejump + upB then he's fine and has enough leeway to get different timings on when to use them, but if he already used his doublejump then he's in big trouble. If he uses the cyclone early he's in big trouble as well. Cyclone and green missile are so free to punish because of their huuuge endinglag. And if you catch him once at the end of cyclone he's already in a super terrible position and has to hope for a misfire probably.
I mean it depends on your characters toolkit/recovery if you can risk going offstage against him. Like I probably wouldn't do it with Diddy Kong... but Sonic, Megaman or someone like that? They should be safe enough. It feels so free to get Sonic bairs on Luigis recovery if he ever uses sideB, and if you wait for a cyclone that should be free as well.
Imo
the best characters against Luigi are ones that combo him well and into a bad position (Sheik, Mewtwo, Bayonetta, Cloud, Rosa?), zone him out (characters with good range/disjoints/projectiles: Luma? but mostly Mewtwo and Bayonetta which also get combos out of these pokes, maybe Corrin too), characters with good mobility to help this zoning (Mewtwo, Greninja, ..), characters who can go out far to catch Luigi offstage when he has to recover (Sheik, Sonic, Mewtwo, ..), characters who also have a good recovery that is pretty safe from cyclone (Sonic, Megaman, Sheik, Bayonetta ...).
Like I said Luigi is a free target if he has to use sideB or downB offstage, and that's true for any character that can go out there. Of course this also means good Luigis will just not use them unless they have to or are far enough away for them to be safe. Cyclone can be somewhat safe if you use it far down I guess, but Luigi can't mess up the mash tho, which can be big pressure.
As you can see..
Sheik, Mewtwo and Bayonetta are listed often.
I don't think Sonic is bad for Luigi. He can edgeguard him well, but he has to set up for it (get Luigi offstage in a bad spot, then get reads).
It's much easier for Sheik since bouncing fish will catch everything and outdisjoint it, and has good enough killpower offstage. She also sets this up really well with her fair / bouncing fish combos. Luigi has to never get hit out of his doublejump.
Luigi can combat Bayonetta because of his great reward off grabs and his super punish in upB if she witchtimes on the ground or is some other way hard read, but overall she can zone him out with bairs and dtilt a bit and obviously her combos could always lead to death anytime while Luigi has to only go for grounded punishes or else he could get witchtimed and die from it.
This leaves me with those as
Luigis bad MUs (imo):
Sheik (combos that put into terrible position, pretty safe overall with her quick, lagless pokes, edgeguards amazing)
Mewtwo (combos that put into terrible position, can stay pretty safe, zones good with dtilt range)
Bayonetta (combos that can lead to death, witchtime forces grounded punishes (grabs), almost untouchable recovery)
Rosalina (Luma walls out, juggles are super scary and it's super hard to land against her, while grabcombos almost don't work at all against her)
Then possibly (very close to even/even imo):
Cloud (juggles really well, limit can get KOs easily, outranges with disjoints and has great airspeed)
Marth (outranges with good disjoints)
Greninja (amazing mobility/airspeed to stay safe with aerials, amazing dashgrab, good projectile)
Megaman (pallets somewhat wall out Luigis groundgame, safe recovery)
Ryu (Luigis range and airspeed/nonexistent mobility suck so much that it's hard to challenge/escape him, kills off frame 3 moves (utilt to shoryuken, nair combos into spike), be scared of focus attack all the time, you never have the lead against Ryu unless you get the stock [which is hard to take for Luigi because of Focus Attack denying landing punishes])
Those are the most obvious I think (not saying there are no other contenders). I'm not sure if any are -2, though. Sheik and Bayo are some of the best for Luigis combos, same with Cloud and for him it's also possible to get (cyclone) gimped.