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This is for authorizing an app to be a file manager. It's not a normal way for apps to access files/directories outside their app sandbox. It also isn't something they can directly request via a dialog. They can send you to the Settings app after telling you to enable it though.
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Look at the outcry against scoped storage being enforced with apps forced to use the system file manager. It was delayed for a year despite scaling it back and leaving support for requesting bulk access to indexed media (but not generic file access including non-indexed media).
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People have been far more vocal against these improvements than they have been in support of them. If they removed support for alternative file managers, which is being abused by that app, especially if it refuses to work without it, a lot of people would be even more unhappy.
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