I also have an iPhone (12Mini), and the problem started suddenly a few months ago. I can turn privacy Off when I am on a phone call, but then it goes right back on.
Interestingly, I've got two 2010 Flexes -- One works OK, and the other one mirrors your problem.
I've tried deleting SYNC from the iPhone and my iPhone from the SYNC menu, and re-pair, but that didn't work.
My next step is to do a system reset and see what happens.
Lotza luck == please post if you find a fix!