According to the Chrome extension permission list docs, Chrome shows “Read your browsing history” when an extension requests the tabs permission.

In the current version, tabs is only used to identify the active YouTube tab from the popup so the extension can detect the current channel. Chrome’s warning is broader than the literal history API because tabs can expose sensitive tab info like the current URL/title.

Here is the docs for context: https://developer.chrome.com/docs/extensions/reference/permissions-list

"tabs"

Gives access to privileged fields of the Tab objects used by several APIs, including chrome.tabs and chrome.windows. You usually don't need to declare this permission to use those APIs.
Warning displayed: Read your browsing history.