In this scenario I’m not sure why limiting choices is viewed as a bad thing so long as factors like allergies and religious preferences are taken into account. It sounds like we need to first decide whether EBT should be viewed as food stamps or as supplemental income. As I understand it, the government moved away from literal food stamps because it actually involved more cost to say “here is your money, you can only buy x, y, z with it.”
A pantry based program would ideally involve cooperation with local coops and growers to both subsidize their businesses and provide balanced meals fo families who likely don’t have an abundance of time to do it themselves.