It’s actually completely normal. Using their site and making withdrawals is fine, but since they have verification levels, if your account doesn’t have KYC yet, of course there will be limitations on what you can do and how much you can withdraw. Asking for KYC isn’t a big deal nowadays, and you don’t have to worry as long as the site is legit, you’ll get your winnings once it’s completed, I don’t see any problem with that.
You’re correct, some gambler making it a big deal because many incidents in the post that user freeze his account after winning huge amount and ask to verify KYC.
Some of these users are genuinely winner while others are involved on shady activities such as match fixing and other exploits.
They mixed their issue on genuine winning that’s why it create a wrong impression on KYC.