At least the third party ( exchange) has no real data of you, it's just between the seller and the buyer exposing themselves. Still some level of privacy since you can achieve that with stolen emails and phone number/ bought numbers
You get the point perfectly my man, my focus on this topic is majorly on the abilities of small Bitcoin holders who are mostly newbies who are looking for just a wallet to use, for p2p and other crypto transactions with the possibility of zero KYC, the level 1 which one can easily achieve such verification 100% anonymously since all required data can be generated third party.
Unlike other KYC levels where personal documents and data like BVN etc are required.