I don’t know. I wouldn’t say that governments do identity better than anyone else and adding more dependency on it just increases the value of the government ID making it an even more lucrative target to steal/forge.
Fake ids are a thing and the quality depends on how much you spend. Governments also have reasons to lie about identity themselves (think spies).
A true identity solution means being able to cross reference your identity across multiple entities (federal government, state and municipal, employers you’ve worked for, businesses you’ve interacted with, etc etc).