Warnings Your Apk Is Using Permissions That Require A Privacy Policy: (android.permission.READ_PHONE_STATE)

In manifest not added android.permission.READ_PHONE_STATE. permission.

Why error comes when I upload a new apk version error comes below.

Your app has an apk with version code 1 that requests the following permission(s): android.permission.READ_PHONE_STATE. Apps using these permissions in an APK are required to have a privacy policy set.

I have attached a screenshot of my google play store account.

my manifest file.

<?xml version="1.0" encoding="utf-8"?>
<manifest xmlns:android="http://schemas.android.com/apk/res/android"
    package="com.my.package.name">

    <uses-permission android:name="android.permission.INTERNET" />

    <application
        android:name=".utils.PreferenceManager"
        android:allowBackup="true"
        android:icon="@mipmap/ic_launcher"
        android:label="@string/app_name"
        android:largeHeap="true"
        android:supportsRtl="true"
        android:theme="@style/AppTheme">
        <activity
            android:name=".SplashScreen"
            android:screenOrientation="portrait">
            <intent-filter>
                <action android:name="android.intent.action.MAIN" />

                <category android:name="android.intent.category.LAUNCHER" />
            </intent-filter>
        </activity>

        <activity
            android:name=".MainActivity"
            android:screenOrientation="portrait" />

        <activity
            android:name=".CategoryListActivity"
            android:screenOrientation="portrait" />
        <activity
            android:name=".ImagesActivity"
            android:screenOrientation="portrait" />

    </application>

</manifest>

Your app's manifest.xml having these permission to access information from your's device but you don't have privacy policy link while submitting on the play store. so you getting this warning.

Need privacy policy for the app If your app handles personal or sensitive user data

Adding a privacy policy to your app's store listing helps provide transparency about how you treat sensitive user and device data.

Update 1

The privacy policy setting in Google Play Console has changed locations.

In Google Play Console,
Select Store presence → App content.
Under Privacy Policy.

Update 2

Select Policy → App content at the far bottom left.
Under Privacy Policy.

Just try to add this line to your manifest file:

<uses-permission android:name="android.permission.READ_PHONE_STATE" tools:node="remove" />

and add attribute xmlns:tools="http://schemas.android.com/tools" to your <manifest> tag to define namespace tools

From the documentation for tools:node="remove":

Remove this element from the merged manifest. Although it seems like you should instead just delete this element, using this is necessary when you discover an element in your merged manifest that you don't need, and it was provided by a lower-priority manifest file that's out of your control (such as an imported library).

It's third party library. You can find the culprit in build/outputs/logs/manifest-merger-release-report.txt

The dependencies you have in your project, will add their own permissions. Please do the below to find from where "READ_PHONE_STATE" is coming.

1. Rebuild your android application
2. Press "Ctrl+Shift+F" in android studio (basically do a search all in the editor of your preference).
3. Search for "READ_PHONE_STATE", you would find the entry in a regenerated manifest file (not the one you originally created). By the path of it you can know, from which dependency the permission is getting added.

It may be because of any third party lib which may include that permission so from my experience in this field You have to add the privacy policy regarding to that particular information it means if you ask get accounts permission in your app than you have to declare that with your privacy policy file we use that data i.e. email address or whatever with reasons like to login in google play game.

Also can do this

<uses-permission android:name="android.permission.READ_PHONE_STATE" tools:node="remove" />

Hope This Will Guide you What You can do for this warning create privacy policy for your app and attach that with store listing.