I checked my discord, and i think this is a case of discords shitty ui, not changing privacy settings. Yes, my checkbox in that exact location was allowing other people to find based on phone number contamination. However, when i visited the privacy page that i did know existed, that permission was still turned off for me.
Right up until they do, and spend 10 minutes checking to make sure you weren’t hurt or otherwise injured at their party. This is fine for big public things, but is very much a dick move for smaller groups.