On the ledger, you are anonymous but if someone traces specifically your address all the way to you spending it all, they will be able to identify who is behind that address. I think that this is a good reason why not every money laundering users are using bitcoin because the FBI can trace it beck to them especially if there's big transactions and consecutive transactions done in a single address.
It just requires one connection to your physical address (because you made an order or something) and you are more or less completely identified. Add to that an exchange you underwent KYC on, again you are identified. If you now use Bitcoin addresses that have ever been connected to one of the identified addresses, you are definitely completely identified.
Yes, it is true. So if the government is afraid to be used as an instrument of crime, I think with your explanation it can be identified as well. even though we ordinary people only see the address without clearly stating the identity of the wallet owner