RISC Zero is useful for crypto use-cases: Other people need to verify an exact program was run.
The identity use case is about connecting sources of trust (document issuers) with consumers of that trust ("this is a real person") in ways that don't release more than the minimum information required ("the passport office has signed that this is a real person so we can trust that").
Single purpose circuits make a lot of sense for this - there is just no need to a full ZK RISC-V VM for this use case.