My guess is the MID function is not available. I replaced it with this:
LEFT(RIGHT({phoneNumber},7),3)
This pulls the right 7 digits (removing the area code) and then grabs the left 3 digits of that result. This worked for me in a quick test.
Full expression:
valueexpression=IF(ISBLANK({phoneNumber}),"",CONCAT("(",LEFT({phoneNumber},3),") ",LEFT(RIGHT({phoneNumber},7),3),"-",RIGHT({phoneNumber},4)))