Why does the Terminal app need access to Contacts? In Security and Privacy, Terminal has access to Contacts.  It also has access to Calendars, Reminders, and Photos.

Why does Terminal have access to them? I do not know of any Terminal feature which requires them.
It doesn’t need access - say no to the request. 

Unless you want some program that runs inside terminal to look at your user data, just decline these requests. 

This is covered in the security part Data protections - https://www.apple.com/macos/catalina/features/ - you are seeing the ask to allow looking into that data store / folder.