This is not a scam accussation.
Kucoin's policy is pretty clear about KYC, which you have agreed to when registering an account:
2.3. KuCoin maintains an anti-money laundering, countering the financing of terrorism and know your customer compliance policy (the AML/CFT Policy). Pursuant to such policy, KuCoin may, in its discretion, require identity verification and go through other screening procedures with respect to you or transactions associated with your KuCoin Account. You agree and undertake to provide KuCoin with any and all information and documents that KuCoin may from time to time request or require for the purposes of these Terms or in connection with your KuCoin Account (including, but not limited to, your name, address, telephone number, email address, date of birth, government-issued identification number, photograph of your government-issued identity card or document or other photographic proof of your identity, and information regarding your Digital Token Account). KuCoin will have no liability or responsibility for any permanent or temporary inability to access or use any Services as a result of any identity verification or other screening procedures.
This doesn't mean that KYC is mandatory but they can require you to verify your identity in certain cases, so technically their support wasn't wrong when saying that KYC isn't mandatory. Trying to sell over $11,000 worth of a privacy coin is a valid reason for them to require identity verification. Kucoin has no choice but to follow these AML/CFT policies in order to remain compliant.
It is very much a scam accusation because there are many holes not only in the multiple policies I posted links to from kucoin but, in addition their representatives not being consistent, posting this one policy simply adds to the ambiguity and inconsistency I will point out why.
Of note thre are some factual issues with your presentation:
1) Terms were changed on 8/13/20 as per the link itself I joined before this date as can be attested by the evidence, Aug. 3rd 2020.
2) They have specific terminology on the kyc process and the outcomes that in multiples directly contradict and not just legally, they have actually 3 reference points as links I have presented that immediately contradict this, in contract law this is what is called ambiguity in which you follow the most referenced points in case of contradictions such as these.
If you have a chance to review contract law please try because when you do you will learn that ambiguity is a common issue that causes problems with many companies, this is why for example a civil lawsuit can be successful.
In this example kucoin has either intentionally or unintentionally made it confusing thus leaving you the customer to learn about contract law or simply hire a lawyer to review the contract. In either presentation of these you or I would be easily successful in proving lack of consistency in their actions. It cannot be expected of the customer to know the intentions without clear, concise and explicit terms, this is not that.