I think bounty hunter should declare as kyc unnecessary for them and the future cancel it. For project team You should know that bounty hunter just accepted as a job. Personal I do not participate in kyc passing a project because there are many bad teams who do not deliberately accept kyc.
They have to do KYCs in some specific bounties in order to get payments. It does not solely depend on bounty participants, but also mandatory required by bounties managers/ companies which run those bounties. I don't like to do KYCs with bounties, because I don't know they will use my identities for unknow purposes.