Here's an article that summarized the claims and counterclaims.
https://www.pcgamer.com/epic-steam-data-reddit/
It sounds like a little of EGS not being as upfront as they should have been and a little bit of running with a misunderstanding by the Internet.
I remember hearing things like the epic game store launcher rifling through your steam games and contact lists, etc. I just don't want to install anything like that and running a VM just for that seems silly.
Edit: article summarizing the claim and counterclaims.
https://www.pcgamer.com/epic-steam-data-reddit/
Sounds like a little bit of epic not being clear in what the software does and a little of the Internet running with a misunderstanding.
That's good to know, thanks!