Yes, I do think you'd be allowed to sell a phone to normal people in serious quantity. The kerfuffle with Graphene was about whether or not they specifically targeted organised criminals, Anom-style. No charges were made - some idiot politician just assumed Graphene==Encrochat and made a public statement based on that.
You are factually wrong here almost completely.
Wrt Graohene the problem isn’t the politicians making announcements, the police assume you are a criminal if you have Graohene and are profiling you on this basis.