Avraham and his progeny—the Israelites—were always destined to settle in Canaan—not Egypt—where circumcision would indeed mark them as distinct as the folks that populated Canaan did not circumcise themselves.
Per Tanach, the inhabitants of Shechem (Bereishis 34) and the Pilishtim (Shoftim 14)—who all—all of whom resided in Canaan/Israel—did not practice circumcision.
Milah would be a unique marker in such an environment.