Up until now, I thought the only way to convert fiat to BTC is through KYC exchanges. It seems like there are alternatives such as Bysk. Did I shoot myself in the foot by purchasing through KYC exchanges?
No you didn't shoot yourself in the foot, but it's always better option not connecting your bitcoin addresses with your real identity.
One option you have is using bitcoin mixers like Chipmixer that will make very hard for anyone to identify source of your coins, or you can use exchanges that allow trading with some withdrawal limits even if you didn't pass kyc verification.
Best option is using decentralized exchanges like Bisq or P2P trading websites like LocalCryptos that nobody can control.