@snikket_im very minor clarification: Google had accepted the version that reinstated the contact permission. This was live for a couple of days/weeks until they suddenly changed their mind. They didn't just outright rejected the update. gultsch.social/@daniel/1120841

Interesting that you still had contact list integration soft disabled. That confirms that Google believes contact permission == uploads data. Considering how Google makes money that kinda makes sense I guess...