I tried it again and, this time, I could find the strings. I have no idea why it didn't work, earlier. However, this is really a side issue to the problem.
The real problem is that, even if I create overrides for those strings that I want to change, it still uses the strings that are hard-coded into component.cbprivacy.php
This doesn't surprise me because of lines, such as I mentioned in my earlier post: e.g. $subject = CBTxt::T( 'Your Account has been Disabled' );
Shouldn't this read $subject = CBTxt::T('YOUR_ACCOUNT_HAS_BEEN_DISABLED_529b32', 'Your Account has been Disabled' );
Now, looking at the T function of the CBTxt class, I find that it is: public static function T( $languageKeys, $englishString = null, array $args = array() ). Therefore, my limited understand says that, if there is only one parameter, the $englishString variable remains as null and only the string that is the first parameter will be returned.
The net result is that the string that is returned is neither the original string in the language file, nor the override, but the hard-coded one. The first (and only) parameter of this function is a hard-coded string. In what way is my thinking wrong on this?