If a stablecoin issuer has to buy US treasuries to back the token, and has to report to the government, and can seize or shut down any account at the government's request, I don't see any fundamental difference between them and CBDC's.

After all, the Federal Reserve isn't a government agency any more than Tether is.

And one of the main reasons any of us got into Bitcoin was the limited supply, stablecoins are infinite.

No, there is zero tangible difference between a CBDC and a stablecoin.