.html
only returns data when you do not provide it an argument, take a look at the .html reference to see the proper usage
so:
var phone = $('#dia_phone').html(row.Phone);
does not return anything to phone
because you are passing an argument
it would need to be
var phone = $('#dia_phone').html();
what you want is:
var phone = phoneFormat(row.Phone);
$("#dia_phone").html(phone);