Facebook/Meta (the owners of Instagram) have been extorting phone numbers and IDs from people for years. They don’t target everyone all at once, but a few hundred here, a few hundred there. I don’t know if they do it for all new accounts, but the practice is definitely not new.
This is one of the many reasons why I stopped using their services.
My approach with companies that do this: Contact them, explain that I will not be giving them any money due to this aggressive anti-privacy practice, and take my business elsewhere.