Coin control is very important in a high fee environment

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Coin control is important for privacy too. I have KYC and non-KYC Bitcoin in different addresses and I don't want them those UTXOs getting mixed into the same transaction.

You’re absolutely correct

Yeah you might want to consider to have them either in separate accounts or separate wallets, separate passphrase is another option.

If you have a ColdCard the bip-85 spec might be another good method.