Privacy is only for transaction amounts though right?
Discussion
Yes.
The answer to your next question is:
No, the coins you peg out are not the same ones you peg in, they are randomly chosen from a pool.
That answer is direct from nostr:npub1qg8j6gdwpxlntlxlkew7eu283wzx7hmj32esch42hntdpqdgrslqv024kw