Welcome to Android Central! Google Play Services is integral to many of the functions of the phone, both using Google's own apps as well as many 3rd party apps. When it asks for Phone permission, it doesn't mean Google's going to start making phone calls on your behalf, or record the salacious details of all of your calls. It probably has to do with things like being able to identify the caller, identifying spam, etc.
If you really feel like Google is invading your privacy repeatedly, then an Android phone may not be your best choice. You should also completely divest yourself from any social media platform and delete any online shopping account, like Amazon. It might also be helpful to read Google's complete terms of service (as well as those of any other company you deal with) so that you fully understand what the companies do with your data. Google tends to be more transparent about this kind of thing than other companies.