MacOS – Meaning of ‘“Applications” would like to receive keystrokes from any application’

I am on MacBook and see:

A google search for the exact quote reveals very little.

Is "Applications" referring to everything in the Applications directory? Is this a common request on macOS (i.e. nothing to worry about)? Or is this something suspicious (like some program imitating or posing as something harmless)?

Some concerns

• I'm not sure if "Applications" means all applications in the Applications directory, or something else?
• I'm not sure if this permission grants certain application(s) access to keystrokes only while the application is actively being used, or even while not in use?
• Several applications were open when this prompt appeared, and so I do not know which one caused it. Some that were open at the time were desktop versions of whatsapp, discord and slack, as well as chrome, sublime text, and terminal.

Note: running Catalina 10.15.6

Update 1

After clicking 'Open System Preferences' I see 'Discord' is the only application shown. Does this mean "Applications" == Discord?

Also, the question about what this grants access to is indeed explained: this does(!) grant the application(s) access to all keystrokes whether using that app or other apps! (it's not clear whether the app has to be open for the keystrokes to be collected).

Update 2

I read this it's well known discord asks to access (all) keystrokes for it's 'Push to Talk' feature