Usability of mobile websites has intentionally been kept worse than that of mobile apps. Probably from not long after smartphones and mobile apps first came to be popular.
Just one example is the local ads service by eBay where the mobile website is usable, but just so much more clumsy than the app.
And all just with the goal of pushing users to the apps because they enable much more valuable data collection.
The lies about malware are the most laughable. Malware ultimately only matters for business usage (if for that). I have seen (non-tech-savvy) people here use Windows PCs with all its software pirated (completely typical here in Iran, and presumably in most of the developing world), and they are just fine. They needed to install some antivirus software before Microsoft upped their game, or their computer would break after some (rather long) time, but installing a (pirated, of all things) antivirus app isn’t that hard. People could just pay the computer retail shops to do it for them for a small fee.
Note that this is still the state of affairs even for most enterprise PCs in Iran. Malware just isn’t that pernicious for end users. Ultimately, WhatsApp itself is nothing but malware. There isn’t much difference between poor users who are forced to use a malware-injected cracked app, and people forced to use a privacy-invasive app like WhatsApp because of network effects.
Is that a company-wide policy or just between eg. you and your team? Which country?
EDIT: Just to add, the employer does not have a policy for communications between team members.
I think long ago, Signal used to display phone number just beneath name when you are chatting someone. That always made me a bit uncomfortable. Now they don't do that, only displays name.
They could display the nickname, that could be a nice addition, but anyway removing the contacts permissions is the same as having an empty agenda. WhatsApp isn't degrading or punishing you.
Otherwise, I can impersonate anyone with any name and contact image that I want. The way it is set up, you are the only one who has control over the displayed name (with fallback to the phone number). I actually like it that way.
Accounts in WhatsApp have a username, but if you don't enable contact permissions on your phone, they will only display the contact phone number in the conversation list view. The username is there if you click into their profile from the chat, but WhatsApp wants to punish me instead.