If I KYC and buy some bitcoin and send it to you that bitcoin is no longer KYC because you own it and the KYC no longer is accurate. However, my identity is KYC’d and they think I still own that bitcoin or they think I used it buy something and they get suspicious. That’s why they KYC.
Discussion
The reason you want KYC free bitcoin is so you can spend it without anyone in the world knowing it was you. KYC takes that away.
Luckily it’s not sticky for bitcoin, it’s sticky for identities though. I wish I had never KYC’d my government identity but I did with coinable and CashApp now they will always know that I bought bitcoin from them. You can’t whirlpool that. Your identity is non-fungible like an NFT lol