The file automatically appearing in Snippets when you activate Snippets says: “Drag the selected text into the Finder folder that opens.”
Please post where you’re reading this.
The documentation isn’t incorrect or out of date on the functionality. macOS’ gatekeeper controls automation requests and prompts, e.g., “Allow XMenu to control System Events?”. It is not a bullet-proof mechanism Apple built. We don’t have any control over if the OS issues these prompts not can you manually add an application to the Automation permissions.