In the current article, the spectral properties and electron collision (total and magnetic) excitation cross sections of ions taking placed in quantum plasmas are investigated. These cross sections are further used to study the polarization and angular distribution characteristics of the de-excitation radiation X-ray spectra, which play an important role in basic theoretical research, the diagnosis of the plasma environment, and the design of optical devices. To do so, a distorted wave method within the relativistic Dirac–Coulomb atomic structure scheme is suggested. The effective interaction potential between electrons and particles in hot quantum plasmas in the method is determined using a quantum approach that incorporates the influence of effective plasma screening effects caused by collective plasma oscillations. This potential replaces the traditional Coulomb interaction potential and is used in solving the modified Dirac equation to obtain the bound and continuum electron wave functions. Higher-order relativistic effects, such as the Breit interaction and the dominant quantum electrodynamics corrections, are added to enhance the accuracy of the method. Detailed calculations for the relativistic atomic structure and collision excitation dynamics process are carried out, taking the highly stripped H-like O7+ ion of astrophysical importance as an illustrative example. Detailed investigations are also conducted on the variation of energies, collision cross sections, and fluorescence polarizations as functions of the plasma parameters. Our results suggest that the joint effects of shielding and plasma coupling lead the energies, cross sections and fluorescence polarizations decrease (compared with the isolated case). The angular distribution of the X-ray fluorescence emission shows large change, suggesting their sensitivity to these effects. This study not only offers a valuable approach to investigating the plasma shielding and plasmon coupling effects in quantum plasmas but also holds significant relevance for applications in controlled nuclear fusion, astrophysical plasmas and so on.