I don’t think it’s meant to “hide” it from the government. I think it’s meant to avoid using official government documents. This stems from the belief that your birth certificate is the government opening a trust in your ALL CAPS name.
I might be messing some of that up. I still haven’t figured out what combination of alcohol, drugs, sleep deprivation, or whatever is optimal for trying to make sense of their shit. But I promise you I’m committed to figuring out the alcohol/drug portion at least.