There’s no single encrypted representation of a phone number. Rather the entire database is encrypted and the accesses performed by the HE algorithm would be randomly accessing the database in a way that wouldn’t leak anything. Now of course if you have billions of lookups a day maybe something does end up leaking because you’d be able to extract networks from data patterns (ie if the same number is contacting 100 numbers, the data access patterns might be the same) but it’s a lot more complicated than what you’re proposing and I wouldn’t be surprised if this is explicitly handled in the design of the feature.