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Monero fixes this :)
So does Lightning but to a lesser extent.
Even if an identity can be obfuscated from an individual’s bitcoin transactions, the KYCing third party still retains all the user's personally identifiable information (PII), including name, address, selfies and total purchase amount.
Monero doesn't fix that.
And the point made in the article about exchanges and services disallowing deposits which were either mixed or from a coinjoin, or even warning the customer for coinjoin after withdrawal, those same services won't even touch Monero. So yes, while Monero has better privacy that on-chain bitcoin transactions that haven't had privacy protection measures (e.g., coinjoin) perform, KYC is a problem for Monero users just as it is for bitcoin users.
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True that. KYC is just the legacy system trying to weasel, worm and threaten their way into this decentralized future. :)
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