It is common practice to ensure the authenticity of your data in participating in a project, but if you have any doubts, you can choose another project that does not ask for KYC.
It was not. Most of the legit bounty do not require KYC especially during the ICO craze last 2017. It was just recently where they require their bounty participants to undergo KYC and many sees it as an excuse to lessen the participants they have to pay. Remember, bounty hunter are not investors so unlike investors, they do not need to undergo KYC. And most of those project that requires KYC are scam or cheater. Just check the SWACE project where they require their participants for KYC and yet they don't pay any one of them.