Is there a source for this?
Transgender Kansans had their IDs invalidated overnight, causing confusion and panic

Some transgender Kansans received letters urging them to request new IDs that conflict with their gender identity and presentation, because their current ones are "invalid immediately." It’s the result of a new law that also regulates which bathrooms transgender people are allowed to use.

Kansas Public Radio

I’m still baffled by the fact that for most US citizens, a drivers license is the only government ID they have. It’s not that hard to issue an ID card to everyone and when everyone is required by law to have one, it’s way harder for rogue lawmakers to take it away.

Here in Germany we’ve had mandatory ID for decades and it works really well. Even if our government suddenly decided that being trans isn’t acceptable anymore, the worst that would happen in that regard is that your ID card shows your deadname (gender isn’t listed explicitly). Sure, that sucks (a lot!) but at least it doesn’t take away people’s ability to vote or otherwise identify themselves.

There is an inherent distrust of government in the US probably based on how our country started. Even if it’s an illusion, we like the idea of making it as hard as possible for the government to track us. Same reason we we resist universal gun registration as well.

I get it, but I don’t. “I don’t want an official government id so I have you use a government issued document that the government accepts as form of if.”

And don’t get me started with the apparent phobia to passports.

I guess you have to live there to fully understand.

Living here doesn’t make you understand, it’s still BS. There are people here with strong “you can’t let the government have a picture of your face, then they’ll own you!” Attitudes, who also have a driver’s license. There’s the anti-vaccine crowd who think the vaccines have tracking microchips in them. No that’s just your phone. The list goes on. None of it makes sense when you think about it for a single second.
Honestly the only phobia to passports I’ve heard is that they’re not cheap and require forms/work to obtain. I’ve got one, but if you’re just scraping by, you’re not going to want to drop what equates to like a week and a half of federal minimum wage earnings to get a document you might never use.