You can absolutely avoid them totally. I've been buying/selling/trading/using/saving/spending bitcoin for years. I'd wager I'm in the top 1% of bitcoin users in terms of actually using bitcoin as a currency, almost daily. Every single one of my coins has been mixed, coinjoined, or otherwise obfuscated. I have literally never once had a problem with someone refusing one of my coins or demanding KYC or any other such nonsense, precisely because I refuse to do business with anyone who attacks and undermines bitcoin's very existence by treating it as non-fungible.
That currently works only because Bitcoin is not widely accepted by merchants, so regulators simply couldn't enforce stupid regulations on everyone.
Imagine that you had to pay everything with Bitcoin, but merchant would be forced to scan your sending address to see if there any any alerts for avoiding your coins.
That is why EU is now working on new regulations and this would mean reporting of every little thing and transaction you are making.
One more danger is the new labeling for efficiency of blockchain in new EU MiCA regulation act.