The most important thing if you think about KYC-coins in my mind is not the UTXO itself but the exchange having the information that you but x amount of btc. If you really want to get rid of KYC-coins, you have to sell them back on the same exchange you bought them, withdraw the fiat and then buy new coins on a p2p plattform (bisq, peach, robosats, hodlhodl etc.)
Thats overall not too easy and requires some effort but the only way to do that properly. To «unlink» the utxo from you and the exchange your described method is probably good enough.