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Like any app, it needs that permission to write to user storage. Hide it pro renames every file and stores it locally on the phone. Storing it on their server / cloud is optional in settings.
Full network access permission for any app is not in samsung application manager. They show it in other app capabilities. But we dont have access to make it on or off. Why? It it for safety of device.? Just for knowledge purpose.No, allowing that permission only grants the app access to your storage, so that it can hide the files. Without the permission the app won't be able to do anything.
If the app asks for full network access permission then yes, it's possible to read your files. But the app also needs that permission to upload your files to its server if you chose cloud option