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https://www.fastbound.com/faq/form-4473-supplemental-government-issued-documentation/
This is the software most FFLs use for complying with ATF’s various regulations (Fastbound). As you can see, you still need the photo ID (or passport) regardless of if you also need a hunting license because you’ve moved since you got your ID and never updated, but the correct address is required to be on your state issued alternate documents if that’s what was insufficient with your photo ID.
Yeah they’re for sure not fun, but they’re not always that bad. Recently they had an error on the NFA forms for anyone who had a “jr, sr, II, III,” etc behind their name, just had to wait for them to clear that up and reapply, and it was all good. Some people for sure have worse errors happen though and you’re right that they can be hard and expensive to clear.