"For years", simply opening an app implicitly gave it access to most of the data on your hard drive. Regardless of whether you opened or dragged in a particular file.
In Catalina, Apple wanted to restrict this. As a consequence, in the initial release of Catalina, you could drag a file from your desktop into your Terminal, but your Terminal would be unable to access the file. Which of course is terrible UX!
So what Apple did in this update is give back the behavior you're describing: dragging a file into the Terminal implicitly grants the Terminal access. But unlike in old OS's, the Terminal doesn't suddenly get access to most of the other data on your hard drive as well.
Unfortunately, in order to walk that fine line, Apple had to add an extra, undocumented file attribute. And because Apple policy is for anything TCC-related should be SIP-protected, that attribute is protected by SIP and cannot be manually edited. And because a UI for revoking access to individual files would be a complete nightmare, there's no UI pathway either...
Apple's intentions with all of this absolutely make sense. The problem is that good intentions don't matter if the execution is flawed.