Crypto gambling sites usually ask for KYC if they find something suspicious or shady related to the account in question. This is usually specified in their TOS and your situation does seem shady in my opinion.
If you refuse to provide your KYC to them, your problem won't get resolved which is why the decision lies in your hands.
This is such a rough time not just for cloudbet but the player as well. This is the reason it's always better to play at sites once you verify yourself because later it would be all confusion and tension between the player and site once they ask for it.
If you don't trust the website to reveal the documents, I can fully understand and respect your privacy racheshki but then why you trusted them with your money? Cloudbet is here for years I am not against them but if you don't trust a site with your documents then how you trust them with money is questionable.
The thing is that you agreed to some rules and cloudbet is far more trusted to doubt them and if you take my personal suggestion, give them your documents because they are here for years and although there have been problems sometimes, they have a good reputation.
If you are worried about them misusing your documents, you can just use a watermark or something if they allow that.