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I am wondering privacy codes support in Motorola Talkabout MS350R offers protection from other radio users over hearing our private conversation.
No.Privacy codes will not protect you from other people using the same channel over hearing your conversation.
The use of privacy codes doesn’t give you any additional privacy, it simply filter out the conversation from others who might be using the same frequency as you. This could give you the impression that you are the only one using the frequency, but in reality, anyone listening on your channel could hear you simply by setting their radio to not use privacy codes or DCS codes.Most of Motorola talkabout models have privacy codes which can be used for suppressing the interference.