123 Folder scan use and transfer to any other app of information received from Google APIs will adhere to Google API Services User Data Policy, including the Limited Use requirements.
Or in more simple and specific words:
The folder scan will scan which sub folders and files are in the requested folder. No other files/or folders are scanned. No files are downloaded either. To emphasize the API doesn’t provide access to the content of the file it self. Only to the file attributes.
The add-on needs access to the current (open) spreadsheet. No access to any other Spreadsheet on your Google Drive is allowed or needed. The access to the current open spreadsheet is needed to write the output of the scan to the Spreadsheet.
You can schedule the script to run e.g. every week to get an updated list of files
The add-on runs in a sidebar and uses a prompt to display info.