The reasons they need it aren't really that dubious to me: they want to create a service that actual people will actually use, not just weird privacy geeks who never gave up on PGP. Using phone numbers allows for the kind of user discovery that most people expect in 2024, and requiring them inserts a barrier to mass account creation that can keep spam accounts down to a manageable level (especially given the whole point is they can't do content-based spam-filtering in the way that makes email managable).
Personally, my understanding is they've always been trying to develop the maximally private usable chat app, which requires some compromises from the theoretically maximally private chat app.