@Reagen0:
Welcome to Airbnb! It is my understanding that Airbnb does not require government ID anymore for a guest's first booking. While your setting may be a requirement, Airbnb may be overlooking it due to the change in their policy.
However, just to confirm, from your calendar page in the admin panel, click the link, "Booking settings," located at the top right of the calendar. "How Guests Can Book" should be set to , "Guests who meet all your requirements can book instantly. Others will need to send a reservation request." The option under "Guest Requirements" for government ID should also be ticked.