coinjoin and mixing has similar results when using wallets with those capabilities. just because you want privacy doesn't mean you're a criminal.

Agreed. Privacy doesn't mean criminal. What confuses me is how we are backing a public ledger (bitcoin) with all our might and being, then saying we want privacy ontop of it... Wouldn't that be like me using XMR and saying I don't want privacy on it? Idk. I just use things for what they are. 🤷

No. KYC is to the person not the utxos. There is no kyc on bitcoin. It simply links you to a utxo. Sending the utxo to cashu or even to whirlpool doesn’t get rid of kyc. It obfuscates the spending of a utxo. If foe any reason an authority wants to force you to prove you still haven’t sold your bitcoin without properly paying capital gains on it then you would be facing that issue. There is an important distinction. The transaction can be hidden but the legal obligations of kyc in the future aren’t removed. The kyc is at the custodian not the blockchain.