Do USB extension monitors need screen recording permissions to work properly?

I bought a laptop screen extender - this one, to be specific: https://www.amazon.com/dp/B0C58X4GBZ?psc=1&ref=ppx_yo2ov_dt_b_product_details

The instructions ask to install a driver that comes on a USB stick, and then give that driver permission under Security & Privacy > Screen Recording. The monitors do get picked up without that permission, however the cursor will only move into those monitors if that permission is given.

Obviously that looks kind of fishy, so what is going on here - is that an extremely blunt attempt to allow folks in China to record my screens, or is that just a weird workaround they found to get their product to work..?