Wow that seems like a strange permission to have as default. It doesn’t seem like very many apps have a legitimate need for listing other installed apps unless I’m missing something.
Google puts limits on which apps can see what’s installed on an Android device Only antivirus programs, file managers and similar will be able to see other apps on a user’s device.
https://www.engadget.com/google-restriction-apps-that-can-see-other-apps-111037925.html
Plugins and addons for other apps is probably the original motivator for this. Also handy to check if an app is present to listen to the intent signal you’re about to send out.
Of course, then the malware/spyware writers got ahold of it and here we are. Something with good intentions and assholes come along and ruin it for everyone. Kinda like pop up windows and cookies.