> So now they ask a full node for merkle paths + transactions for the
> addresses from the UTXO set from the block(s) that it was found in.

This is the part where I get lost. How does this improve privacy? If I have
to specify which addresses are mine in this block, to get the tx data, the
node learns which addresses are mine at this point, no?

Also, are you saying each block needs a record of the entire UTXO set at
the time the block was made? I'm not sure how to parse this sentence.

Could you please walk me through precisely what happens and what data is
sent, once I learn that a block has interesting data in it?
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