Date: 202106
Local time of day: 1201-1800
Location: ZZZ.Tower, US
Flight conditions: VMC
Aircraft: B737 MAX Series Undifferentiated
Operator: Air Carrier
Operating under: Part 121
Flight plan: IFR
Mission: Passenger
Flight phase: Taxi
ATC / advisory: Tower ZZZ
Second aircraft: Commercial Fixed Wing
Aircraft component: Monitoring System
Component problem: Design
Reporter organization: Air Carrier
Reporter function: Pilot Not Flying; First Officer
Reporter qualification: Flight Crew Instrument; Flight Crew Air Transport Pilot (ATP); Flight Crew Multiengine
Human factors: Distraction; Communication Breakdown; Situational Awareness
Second reporter function: Pilot Flying; Captain
Anomaly: ATC Issue All Types; Aircraft Equipment Problem Less Severe; Conflict Ground Conflict; Less Severe; Deviation / Discrepancy - Procedural Clearance; Ground Incursion Runway
Detector: Person Air Traffic Control
When detected: Taxi
Result: Air Traffic Control Issued New Clearance; Flight Crew Became Reoriented
Contributing factors: Aircraft; Human Factors
Primary problem: Human Factors

Narrative: Very interesting set of circumstances led our flight today to take the clearance to 'Line Up and Wait' that was meant for another aircraft in ZZZ [airport].  After we pushed off our gate; we were cleared to taxi to Runway XXR at [taxiway] 1 from our ramp via taxiways 2; 3 and 4.We were all done with our taxi out procedures and checklist by the time we were number 1 aircraft at the hold short line of taxiway 1 for XXR. Traffic was moving steadily; so the Captain taxied right up to just prior to the 'Hold Short' line.  This is where the weird circumstances happened for this event:The first thing that happened is the 737 MAX RAAS (Runway Awareness and Advisory System) EGPWS Aural Callout announced our approach to Runway XXR as it is intended to do so.  Also; at the exact same time; the Tower Controller gave a clearance for an aircraft to; 'At XX Right; 1; line up and wait.'  What happened is that the two voices; of the RAAS; and the Controller; most likely blocked each other out to us; the crew.Since I was working the radio; I made the assumption that the Controller was calling us since we heard tail end of; 'XX Right; at 1.'  I repeated back exactly; 'Line up and wait Runway XX Right; at 1; [call sign].'  After that we did not hear anything from the Controller as the Captain taxied into position for the hold.  As we were taxiing onto the runway; I noticed from the opposite side of the runway at Taxiway 5; Aircraft Y taxiing what looked like across the runway to me. As the Captain rounded out the turn to line us up with the runway; we hear the Controller say; 'Well; that's interesting.'  He then proceeded to tell us that we had taken the clearance for Aircraft Y to line up and wait.  I then proceeded to apologize; but that I had also read back to him the clearance.Since Aircraft Y was behind us on the runway; the Controller just told us to hold position; and he proceeded to re-shuffle the order; and was able to let us go first in front of Aircraft Y.  We got a clearance for takeoff and had a non-eventful departure.  As the Controller handed us over to Departure Frequency; he stated; 'Upon further review; I think I screwed that up; no worries; contact Departure.'At that point we started formulating a theory on what may have happened and the Captain and I started to debrief it in late climb out; and cruise flight.What I believe happened; is that when the RAAS created the aural warning that we were approaching runway XXR at intersection 4X; was the exact time where the Controller called Aircraft Y to line up and wait. BUT; upon further review of the audio of ATC; the Controller gave out the wrong taxi way intersection to Aircraft Y. What we both heard right after the RAAS had completed its aural callout; is the tail end of the clearance.  Even though Aircraft Y was on taxiway 5; Tower gave out the incorrect clearance of 'Aircraft Y; Runway XXR at 4X; line up and wait.'At this point; I believe either both the Aircraft Y pilot and I probably keyed the mic at the same time; and repeated back the same clearance since we assumed we heard the tail end of the clearance as 'XXR; at 4X; line up and wait.' Or; maybe I read back the clearance first and the Aircraft Y pilot also assumed since he heard me take the clearance that it may have been for us only? That I don't really know.


Second narrative: I was taxiing to Runway XXR at [taxiway] 4X.  I was approaching the runway hold short line as Aircraft Y in front of us received their takeoff clearance.  I kept the aircraft rolling and was applying the brakes to stop just short of the hold short line when the MAX aircraft that we were in gave us the [aural alert] 'Approaching Runway XXR'...at the same time Tower gave the clearance to line up and wait.  The [aural alert] 'Approaching Runway 28R' occurred simultaneously with the call sign when Tower said '[Call sign]; XXR at 4X; line up and wait.'  The First Officer read back the instructions.  Tower did not correct the read back.  We were the only aircraft in position to take the runway at XXR at 4X.  I continued taxiing onto XXR at 4X and as I was turning onto the center line; Tower said 'Oh isn't that interesting'; and then '[Call sign]; you took Aircraft Y's clearance.' I had seen Aircraft Y on the other side of the runway; farther east; at [taxiway] 5.  And he was actively stopping short of XXR at 5.The Controller basically said 'that is ok; Aircraft X will go first.' He advised us to hold in position; he then cleared us for takeoff.  After takeoff he said that 'upon further review; it looks like I messed up.'


Synopsis: Air carrier flight crew reported confusion over their takeoff clearance when the aircraft's RAAS issued an aural warning at the same time the Tower Controller issued the clearance.