KYC just means that a centralized entity knows how much Bitcoin you purchased, and knows your identity.
Strike, Kraken, Coinbase, CashApp, all KYC’d.
Non-KYC means you acquired the Bitcoin without relying on a third party who has your identifying information. That could be a cash exchange peer to peer, or a fiat payment over RoboSats, or home mining, or getting paid in Bitcoin.
Hope this helps 🤙