The thing about the phone seeing through objects is not true for all but 1 phone model: there was a phone released a while back that had an infrared camera which could see through thin plastics and clothes. Your phone can't do this.
The other capability you mention of listening to everything all the time is technically possible if some three-letter agency or corp started targeting you specifically and got access to your phone to install literal spying software on it. You don't have to worry about that. The mundane device that is actually doing that is your Alexa (if you have one).
If you are feeling seriously paranoid about this, you can factory reset your phone. On my Samsung phone, this is done by going to Settings, scrolling all the way down to General Management, scrolling all the way down again to Reset, and then selecting Factory Data Reset.
A more reasonable conspiracy theory thing to be worried about is that the government has access to a spyware program that can non-invasively (and therefore silently) take up space in your phone's cache, relaying everything you do back to its user. However, since its not actually installed on your phone, restarting your phone once each day will mitigate the damage this can cause. I have set my phone to restart at 3 AM every day for this reason. (It's also just generally a good idea to restart your phone regularly; it will run better if you do.)



Thats literally not how it works though