Not quite. If you offer 3rd party logins you must also offer SIWA, but if you only have email/password you don’t have to.
https://developer.apple.com/app-store/review/guidelines/#sig...
https://developer.apple.com/app-store/review/guidelines/#sig...
I wouldn’t treat it as a privacy feature, I would treat it as a convenience feature. When I needed some extra mask straps, I installed Etsy, didn’t previously have an account. So I used Sign In with Apple to register, picked out some mask straps, and Apple Pay to pay. The whole process only took as long as it took for me to make a selection and two biometric authentications, but some of my information had to be exchanged in order to make that transaction possible.
Also I can login to UPS and Etsy without a password.