Is a blurred number safe?
Not always. Blurred and pixelated text has been read back before (Depix in 2020, Unredacter in 2022). This blur averages before it smooths, which defeats those attacks, and warns when it is too light; but something short and guessable, like a PIN, can be tried against any blur. A solid cover is the only certain one.
Can someone remove the blur from the saved file?
No. The file is drawn from the hidden pixels, and there is no layer under them.
Does the saved picture carry the original’s metadata?
No. It is drawn fresh, so the camera, place and program tags are not in it.
PNG or JPEG?
PNG for a screenshot: sharp text and exact colours. JPEG when size matters more than sharpness, and WebP for both where the other side takes it.