Phule is seen in the bottom right of the Armada Puppetshow. The player will find him in the Granchia Catacombs of Valencia, in Bruno Chapel, Marco Pollo's tomb. Alongside him are the 2 Servus Captains, the Black and White Cadres, the forces the player must fight. When beating these forces, you will find the badge "Tomb Raider".
Once the player reaches The Machine during the events of the second storyline of Valencia, Phule informs the Player Character of Kane's true intentions to combine all of the worlds into the spiral into one perfect world. Phule had no place in this so called "Perfect" clockwork paradise, as stated before. Because of this, he actually betrayed Kane, took out a bunch of Armada troops on the Machine Docks so the Player and his/her crew could safely pass through undetected, and saw absolutely no problem with the Player character defeating Kane at all. This is the only reason why Phule is the only Armada Elite unpresent in the machine during the boss fight with Kane.
Phule has a rather unique personality, just like the other elite clockworks. His personality is split, a different one for each side of the mask and outfit. On the "nicer" and "happy" side, his personality is rather bright and calm. The "darker"and "angry" side is more rude and volatile. Half of him is rather nice towards pirates, the other half quite the opposite. His "emotions" towards the elites aren't known, but of of course must have helpful and unhelpful sidings. He is also unpredictable.
As the player goes through the first "conversation" with him, the brighter side of him never talks about punishment, calls you "resourceful, and even speaks of releasing you, but the darker side of him sends the Cadres after you, states "your pathetic efforts are in vain", and will kill you if you don't hand over your current map piece.
When Phule exits, he says "Farewell pirate, I'm sure we shall meet again," it really should throw you off because it's likely he knew that the Servus captains wouldn't kill you. Or at least one side of him knew that.
More is to be discovered about Phule and his actual Role.
As it turns out, Phule was Kane's first creation- a failure, one who "has a unique view on imperfection"(most likely due to himself being imperfect in the eyes of Kane) and wants to see the Spiral free from the Armada's clutches. Likewise, he has grown fond of the Spiral, its living creatures and even the player.