Probably because of this and this

It has been a while since I looked at Wire, and I didn't look very deep, but here's what I noted:

Self-hosting was unavailable at the time.

I believe they violated their privacy policy a while back, by accepting new owners/investors without notifying their users. That kind of behavior is telling of what to expect from an organization, and potentially dangerous (depending on your threat model) if you're trusting them with anything, such as...

I have read complaints that they stored cleartext contact lists on the server, but I haven't verified this myself. (The first two points were already deal-breakers for me, so I didn't bother.)

I find this site useful to compare messengers. I would trust Wire a tad more because it's hosted in a country with stronger GDPR regulation, vs Signal being hosted in the US.

For my needs, XMPP with Omemo has been unbeatable for a long time

Does Wire still store metadata on who you message? That seems potentially more damaging than Signal's phone number requirement, at least since the switch to being able to hide your number from everyone.

Huh, never really looked into Wire but it seems like its a great option and now im wondering why people bother with signal or matrix if this can do both encryption and federation

Ok, in like 2 seconds of looking into Wire I see that the app is rated 2.8 stars to Signal's 4.5 and under the "data collected" section it lists name, email, phone number, user ID, photos, and videos. Signal lists phone number.