You think so? I believe some privacy upgrades could be implemented as soft fork.
Just think how many Bitcoins are owned by Binance, Coinbase and other centralized exchanges and services, some of them even have their own mining pools.
I am sure they would be all be against adding privacy protocol changes for Bitcoin, because of the fear from regulators could hurt their business.
If they don't like mixers and coinjoin I could only imagine reaction to Bitcoin becoming privacy coin.
I doubt that; they sell and buy Zcash, Monero and Grin amongst other cryptocurrencies so why would a privacy upgrade to Bitcoin Layer 1 influence regulators any more than adding another privacy coin to their offer book?
Keep in mind that exchanges don't really have a say in what softfork is activated or not.