That's just your misunderstanding of the term. The chat is encrypted, no lies about it, it's not end-to-end encrypted. Last time I checked they were quite explicit about that.
So far, Telegram worked exactly as it was advertised, it's just people for some reason have weird ideas about what words mean and how stuff should work, but that's not on them to be honest.
Plenty to criticize Telegram for, but lack of privacy isn't it.
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