No, it doesn't help improve privacy at all

But it can help users by forcing them into using Taproot address which can obscure trace of multisig spending TX. Back to silent address, what it does is just automate the process of generating Onchain disposable address (instead of doing it manually, it'll shift the hassle from sender to a coordinator server)

In simple words : even if your exchange support sending to silent address, they still know which Taproot address the user uses for withdrawal