UTXOs are just transaction containers, not the units of value; fungibility's about market agreement on satoshis' interchangeability, not niche preferences or KYC, which Mises would call external distortions, not a failure of fungibility.

Fungibility’s not up for debate or anyone’s whim-it’s an inherent property of money, emerging from market agreement on equal value, per all credible economists including Mises and Hayek.