I know its a pain. The wife is in a similar position to you and was " invited " ( told )  to join managed payments early in the process. Initially her proof of age, id card WAS accepted although the process to completion of setting up managed payments choked and sat in limbo for a couple of months.

Eventually she had to apply for a passport in order to un-choke the system and keep selling. Yes its a pain, but is it worth getting a passport to continue selling ?

Ebay is not the only place a lack of high quality ID can cause issues and its getting harder all of the time to live in modern society without high value personal id. A bit like living without a credit card or a mobile phone.