I’m running an Iwata compressor with reg and moisture trap. I’ve been using this setup up for a couple of years with no problems until I recently swithced from my Badger airbrush to an Iwata airbrush with an Iwata hose. The trap is still catching moisture - I can see condensation. Lots of water spitting though.
In addition to a new trap, you can install the Iwata pistol grip trap to get any water that slips through. If you have a Hobby Lobby nearby, you can get it for 40% off with a coupon. Another alternative is to install an inline moisture trap downstream from the compressor. HTH.
I’ve used the second one down for years (although I did replace the regulator with a smaller one I already had when I bought it). I just blow it down about once a month (open the valve at the bottom for about 30 seconds)