Here's why:
* Missing a subject: It lacks a subject, the person or thing performing the action. Who was doing something "while you were talking on the phone to Walter"?
* Incomplete thought: The phrase doesn't express a complete thought. We need more information about what happened *while* the phone call was taking place.
To make it a complete sentence, you could add a subject and a verb:
* Example: "While you were talking on the phone to Walter, I finished the dishes."
Let me know if you'd like to practice with other sentence fragments!