I also faced the READ_PHONE_STATE permission problem while loading my app on Google Play Console, and fixed it successfully.

Also I didn't have any AndroidManifest.xml file under Assets/Plugins/Android/

For generating manifest file, go
Player Settings -> Publishing Settings -> Check "Custom Main Manifest"
Unity will generate one for you at that location.

In <manifest/> tag, I added these lines.

<uses-sdk android:minSdkVersion="19" />
<uses-permission android:name="android.permission.READ_PHONE_STATE" tools:node="remove" />

With this configuration I was able to get that permission line removed from the final build, and the problem was gone.

Unity v2020.3.6f1

Please fix it!

--- SOLVED ---
make sure to have the following line added to all AndroidManifest.xml files in your project

<uses-sdk android:minSdkVersion="14" android:targetSdkVersion="25" />

Notes :
* I repeat, the line most be included to all AndroidManifest.xml files in your project. if you left any one behind this solution won't work.
* the line should replace any occurence of <uses-sdk /> line tags.
* I am using android SDK 25

Thank you, good luck every one :)

I realize this issue is not a Unity issue as such as it is dependent on the Android build tools version installed and its embedded manifest merger and the combination of AndroidManifest files in the project and its dependencies.

However, as many Unity android projects using plugins face this issue across many different Unity versions, it would be quite the time saver if a note about how this particular permission can be removed to the Unity FAQ.

The best fix is to set the targetSdkVersion properly. But since the problem usually occurs due to the use of a third party plugin has been added to the project - it is not always possible to fix the plugins manifest. The FAQ could mention both the proper fix, and the fallback resolution to avoid this permission suggested by Russel on Nov 16 2017 in this issue comments - the one about using the tools namespace in your own manifest file and explicitly using tools:node="remove" to exclude that permission from the final manifest.

Posted this elsewhere, but thought I'd put it here too:

So this is a really crappy change in the manifest merger, cause it seems to be responding to files which have nothing to do with the manifest.

I made a blank project and copied across my plugins folder to reproduce, and it did. I then went to remove anything which could be the cause, and it turns out it wasn't any of the actual plugins and nothing to do with AndroidManifest.xml, it was /plugins/Android/res/!!!!
Which was simply a collection of xml files containing localised strings, and png files.

what the actual F is this manifest merger doing?

Anyway, easy way to find out what is putting Read State into your config, is trial and error with a copied version of your project, keep deleting stuff in plugins till read state disappears. Bit of Scientific method always does the trick.

Finally figured it out. It turned out to be one of the manifest files hidden in the Oculus VR plugin that lacked targetSdkVersion.

This solved it for me:
Upgrade the Oculus Utilities for Unity plugin to version 1.24.0

I still have this issue. And I went through all the manifest files making sure they did not lack targetSdkVersion. All manifest files has a targetSdkVersion but I still get this issue.

any solution for this annoying problem??

The remove command worked for me, but only in Android Studio/Gradle

You can also use:

<manifest ......... xmlns:tools="http://schemas.android.com/tools">

........

<uses-permission android:name="android.permission.READ_PHONE_STATE" tools:node="remove" />

This removed the specified attributes from the merged manifest.

More here: https://developer.android.com/studio/build/manifest-merge.html