You need to discuss this with Google.
From the way I read that message, simplying removing permissions will not fix the problem- it isn't the fact that you are using permissions, it is how you are using them.
you must provide legally adequate privacy notice
Do you have a privacy policy URL set for your app in the Play Store?
Further, your Product may only use that information for the limited purposes for which the user has given you permission to do so.
How are you using your user's information? It is possible that a user reported your app for violating his/her privacy.
In any case, we will not be of much help here, as we cannot tell you what caused Google to send you that message.
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