so why not just make the customer verify right from the start. That way, if someone does not like uploading their documents, they won't register.
You answered your own question

The reason why most casinos do not enforce kyc upon registration is because they know many users won't like it and will just close the tab and go find another casino which doesn't ask for identity verification on registration.
Most gamblers want to create an account, make a deposit then start playing as fast as possible. They don't want to wait for their documents to be approved which may take some time.