I don't know of any casinos like this, but the way it might be done is quite logical by canceling the KYC of the user who is going to make a withdrawal, but it might also happen that the country of the user is prohibited in that casino which can cancel the acceptance of KYC, or it could be unclear or whatever even without providing information.
But it would be a pity if there are casinos that do such fraudulent tricks to their users, it is very embarrassing and I am today becoming more careful in using new gambling sites, this makes a little scared, because after all the data provided to the casino is personal data and it is very important to protect.
Only scammy casino would do this but if you play only on reputable casino such as Stake then you don’t need to worry about this issue as long as your document that you will submit is clear and eligible to the casino requirements.
The scammy casino tactics confused already the general public about the KYC. This thread also created a messy discussion that leads to more confusion. Just play on trusted casino and you will never have an issue regarding the KYC.