You can't use autopilot or FSD while on your phone. I've tested this myself. Within a second or two you're alerted to grab the wheel and look ahead. If you don't, you'll get locked out of autopilot for the rest of your drive and your safety score will be dinged.[1] Tesla's ML algorithms even have a classification of "PHONE_USE" for the cabin camera.[2]
Is using FSD safely not part of the terms? What about the people I see cruising down the road glued to their phone?