I have no issue with that as I have done it with other bookies but what they request is simply unreal
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That is not true. They do not ask you to provide all those documents. These are just examples they suggested that you can attach as evidence for "source of funds". Of course, you won't need to submit all of that. That would be silly.
Check some related gambling boards and tons of accusations there, many users got emails to verify accounts due to timezone difference on browser vs IP location.
This is not true. It would be for most casinos, but not Stake.
You won't be required to KYC in order to withdraw, only to continue playing. Unless you're suspected of cheating or scamming some how, when they decide to KYC you, they put your account in withdraw only mode - you're still able to withdraw your balance whether you decide to send in the docs or not.