Right, but I'm thinking the server still needs to be able to say "This person who ever they are is definitely the number you have". Like, I wouldn't check my password hashes with only the first 10 bytes, I guess that's why I'm still stuck on the truncated idea.
No, the server just says "I know these email addresses starting with 'foo': foo@example.com, foo2@gmail.com, foo3@hotmail.com". If your friend's email address is in there, you know they have Signal.
The hashing is so people can't easily get a list of all the phone numbers, which is easy to work around, but, then again, they could just hammer the endpoint querying for all the various numbers anyway.