I've had two cases where phishers have tried to create an account to impersonate my aunt. My guess this is an attempt to curtail these phishing schemes.
There are options for additional checks they could explore that are less creepy.
Make someone pay a one time charge. This might not give you the full details but the transaction gives more data, and shows someone is willing to back up their request for access with a paper trail which has fraud protection laws.
Third party verification services. Like your bank, who already have details about you. There just needs to be a way for them to vouch for you. Credit reporting agencies probably already do this, but I kinda think this is almost creepier than giving Facebook a video.
Verifying the email attached to your account is a good first step.
In the meantime I think knowing the password should at least get you logged in enough for account maintenance. You should be able to set the entire account private and take it offline with limited toggles. Restoring full access would require the additional verification.
You've now put up a paywall on Facebook for new users. Worse, a lot of new users are likely not going to have a banking account in their name, so there is nothing to verify except maybe a location of bank.
Banks do not verify identity for people online. The few companies that do verification are major tech companies, but then Meta may not want to force users to build up an account elsewhere before making an account on their website.
All email verification does is verify that a person has an email address. It does not verify that the email address is for a person.