There are many reasons project you join could be scam and your personal info be in risk,somtimes KYC is not just passport but more and hunter cant give all they need ,somtimes you do everything prject isnt scam but its failed and you dont get anything.
Its better to do KYC once the project over, they will for sure give time for those who didn't pass it yet, just keep updated, some banks related crypto will usually do KYC and I think its fine since there are different regulations stands for crypto in many countries now.