Why exactly is it necessary to to free each hash entry instead of exiting the process?
Advances coming from the combination of more advanced operating systems and CPU features like MMUs have made this a non-issue in most cases (can still be an issue on embedded, etc).
It's seen as good C programming practice to free() your malloc()s, though, and it makes extending programs easier if you have that functionality, since what was previously the end of program can be wrapped in a higher-level loop without leaking memory. But if you really are exiting for sure, you don't have to make the final free-memory call. It can also be faster to not do any intermediate deallocations either: just leave everything for the one big final deallocation, as a kind of poor-man's version of one-generation generational GC. Nonetheless many C programmers see it somehow as a bit unclean not to deallocate properly. Arguably it does make some kind of errors more likely if you don't, e.g. if you have cleanup that needs to be done that the OS doesn't do automatically, you now have different kinds of cleanup routines for the end-of-process vs. not-end-of-process case.
As an aside, GNU libc keeps ( or at least used to keep, I haven't checked in years ) the pointers used by malloc()/free() next to the blocks themselves, which gives really bad behavior when freeing a large number of blocks that have been pushed out to swap--you wind up bringing in pages in order to free them because the memory manager's working set is the size of all allocated memory. Years ago I wrote a replacement that avoided this just to speed up Netscape's horrible performance when it re-sized the bdb1.85 databases it used to track browser history. The browser would just "go away" thrashing the disk for hours and killing it just returned you to a state where it would decide to resize again an hour or so after a restart. Using LD_PRELOAD to use a malloc that kept it's bookkeeping away from the allocated blocks changed hours to seconds.
Obviously many programmers do not think to (or cannot easily) test their code with 40 TBs of data.
If you wrote cp in such a way that it's a reusable C library that other programs might use, then I can understand why they do this. It still doesn't make much sense for the command-line version to call this. Of course, it might run on some weird platform where the OS doesn't reclaim the memory of a process on exit(?).