actually you are the one who is misunderstandings things!
these so called "projects" are either purely scams who are set to make the most amount of money which means they will sell your identity on the dark market to make more money from you and call that "KYC" or they are created by newbie idiots who thought if they ask for KYC their shitty projects would look more legitimate so they can fool more people into giving them their money. and their databse is easily hacked and the KYC documents would still end up in dark market.
and that is the main reason why everyone has been complaining about it. it has nothing to do with being an investor or not.
Even up until now after I have break down the misunderstandings pertaining the kyc you still find it very difficult to comprehend. I am talking about scam projects and I never ask you to submit your kyc to any project that you see as a scam. What I am referring to is the fact that many even when the project is super real still hate kyc. Because they believe hunters don't need to perform kyc