Why does Signal want a phone number to register if it's supposedly privacy first?
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A timing attack is extremely realistic when you control one of the end devices which is a common scenario if a person gets arrested or their device compromised. This way you can then identify who the contacts are and with the phone number you can easily get the real name and movement patterns.
This is like the ideal setup for law inforcement, and it is well documented that honeypot "encrypted" messengers have been set up for similar purposes before. Signal was probably not explicitly set up for that, but the FBI for sure has an internal informant that could run those timing attacts.