What does the Apple Store do with our old iPhones?

Question -- I have a water damaged iPhone and I am probably going to have to get it replaced at the Apple Store. It's basically bricked and won't turn on, but what happens when I swap it out? Do they try to fix the old one? Or just gut it for parts? I ask because I have private pictures and notes/passwords, etc. on there that I would worry about people having access to if they were able to get the phone working again.
Once I switch my backed up data and port my number over to the new phone, would anyone still be able to access that stuff on the old one? Or if they did get it working again, would it go back to a restored version?

I guess the real question is if the phone is recoverable, would my data still be on there? I'm worried about my pictures/notes being recovered? Or does that all port over to my new phone?

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