I guess they allow bureaucratic logjammers to get pernickety.
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They help distinguish people with the same name, just as DOB does. If someone with a US birthplace attempts to enter the USA on a foreign passport, the border people may subject him to additional questioning to determine if he is a US citizen (and therefore required to enter on a US passport). US birthplaces are also used by banks in some countries to determine whether an applicant should be refused services due to FATCA.
Extensive discussion here: https://www.flyertalk.com/forum/checkpoints-borders-policy-debate/1818510-why-do-passports-list-place-country-birth.html
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