This is worrying. I always thought about this since I have long-standing user experience with privacy-related stuffs and the more you block, the less you can use. But being unable to access financial services or city infrastructure provided by your city makes me think that either these services are terrible or the privacy phones are breaking something. Case in which I am most curious to find out what exactly are they breaking and how are those things both essential and privacy related? - I'm unsure if my sentence makes sense, English is not my first language.

Removal of KEYGEN feature from Firefox and other browsers was a major mistake in this regard.

My bank(s) used password+client certificate, but now they have switched to proprietary mobile OTP apps. (also due to some directives). For some stuff, SMS codes are used.

Also, I've seen CA's simply deliver the .P12/.PFX file now instead of securely generating the key on the client and then signing it.

Seems like your government supports the duopoly, which you should fight against.