you have no choice but to use them when you convert your crypto to your local fiat. Unless, you will use some P2P transactions to exchange your crypto, and this option is sometimes too risky.
I have been using peer-to-peer exchanges for years and have never had any issues. BISQ in particular has has (as far as I am aware) a grand total of two transactions which ran in to issues with scammers performing chargebacks, and they responded by removing the implicated payment methods so this is no longer possible. Compare this to centralized exchanges which have literally thousands of reports of accounts being locked, accounts being hacked, coins being frozen, coins disappearing, coins not being credited properly, unannounced KYC requirements, KYC documents being hacked, KYC documents being sold, exit scamming, shutting down, servers being hacked, etc., etc. I would argue that centralized exchanges are
far more risky than peer-to-peer ones.
Maybe just submit your docs to legit merchants if you can't avoid the KYC thing.
What would you classify as a "legit" merchant? Coinbase are probably the biggest bitcoin related company in the world. They were actively selling their customers' private information to third parties without their knowledge or consent. Binance have been hacked multiple times, both for coins and for KYC documents. Being "legit" means nothing.