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I don't see any contradiction since all he said was "potentially." We don't even have the full quote.

The Signal protocol is also a thing, outside of Signal. For instance, WhatsApp uses it. It's highly possible someone listening misunderstood a reference to signal as a reference to the company, not the protocol, and jumped to the wrong conclusions. Again the article author does not bother to track down the exact quote.

He was referring to Moxie:

He went on to praise Signal, the encrypted chat app that is run as a non-profit. He said he had spoken with its creator, Moxie Marlinspike, who is now “potentially willing to help out” with encrypting Twitter DMs.

“Ironically, Moxie Marlinspike worked at Twitter and actually wanted to do encrypted DMs several years ago, [but] was denied that and then went and created Signal,” Musk said.

https://www.theverge.com/2022/11/21/23472174/twitter-dms-enc...

(comment deleted)
Thanks for the added context. That makes it pretty clear the title here is indeed flamebait.
We really need better journalism, this entire claim is based on another article where he says he has been talking to Moxie. They at least linked it, but you would expect a journalist to add his actual quote to the story. Here is the section from the linked article where they came up with the idea that he claimed signal was going to work with him.

  He went on to praise Signal, the encrypted chat app that is 
  run as a non-profit. He said he had spoken with its 
  creator, Moxie Marlinspike, who is now “potentially willing 
  to help out” with encrypting Twitter DMs.

  “Ironically, Moxie Marlinspike worked at Twitter and 
  actually wanted to do encrypted DMs several years ago, 
  [but] was denied that and then went and created Signal,” 
  Musk said. (For those curious, The Wall Street Journal has 
  a writeup from 2015 detailing Marlinspike’s time at 
  Twitter.)
I wonder if musk fired them for contradicting him in public.
It's crazy how much nonsense stems from people reading a tweet and turning it into an article as if that gave it legitimacy. Random speculation is being presented as news and getting a lot of traction on social media.

There's one site in particular that just turns Elon's tweets into articles, tags him and then he likes or retweets them. A total circle jerk free of facts.