Passports require the most paperwork out of anything - your in particular, a birth certificate, a second form of ID including a driver's license, a photo, and $130+$35. The USPS isn't just looking at a face and issuing a passport.
0The issue here is that homeless don't hold onto anything physical for 4 months; identity verification breaks down in-person immediately as shelters/libraries can't be expected to run a facial recognition operation, and specific shelter employees/volunteers aren't guaranteed to be there anytime a homeless person might walk in and need those backup codes, but it breaks down even further online since 2fa is inherently 'what you know' + ('what you have'/'who you are').