You can read the spec here

"In Manifest V3, we want activeTab-style host permissions to be the default, with a number of extra options. Instead of being granted access to all URLs on installation, extensions will be unable to request <all_urls>, and instead the user can choose to invoke the extension on certain websites, like they would with activeTab. Additional settings will be available to the user post-installation, to allow them to tweak behavior if they so desire." --- https://docs.google.com/document/d/1nPu6Wy4LWR66EFLeYInl3Nzz...

yup it looks bad.