[sgp_]

I feel you're deliberately being pedantic. There's nothing legally dictating 1 pound of flour = any other 1 pound, but it is fungible, by the definition of them being indistinguishable.

1 NFT isn't the same as any other NFT. They're deliberately non-fungible.

Specific Bitcoin outputs have histories associated with them. While you dismiss this as related to traceability (which is also true), it still stands that one output with a favorable history is preferable to an output that was known to be mined in North Korea.

For these differences, as evidenced by the specific exchange action examples in the linked article, show that different output histories allow companies like Chainalysis, CipherTrace, TRM Labs, and Elliptic to add specific risk scores to outputs. Those with lower risk scores are worth more than those with higher risk scores. This is a breakdown in fungibility.