same here, they ask me to verify account, and give selfy photo, and many documents.
i told them i want to leave paxful and withdraw my balance but they rejected to give me my balance.
i was active on paxful since years, and i really loved them but yes, they turned to scam at the end.
Most of these services such as paxful, skrill, lbc need KYC (if I'm not mistaken) due to do their compliance on US AML laws whenever their users have reached x amount of trading, or more likely when there's their so-called suspicious activities.
So your funds will be hostaged on their platform, and it's either you let your funds there or do their KYC verification.