> My government has already seen my government-issued ID.
If you have a government ID and all you use it for is voting and paying taxes, then they know that you vote and you pay taxes.
If you have to use it for accessing the internet then they know everything you do on the internet. What you read, who you talk to, what you post, when you sleep, where you are at any given time -- it's very much not the same thing as just having a picture of you and your name.
No they do not. A properly designed government app that uses cryptography to generate a deniable token that can't be cross-correlated but proves your humanity/age to a consuming site is manifestly different than Google adtech hoovering up as much of your activity as possible.