As far as I understand it works by grabbing screenshots of your menu bar and redrawing overtop of it. It can't do that if it doesn't have the permission to do screengrabs.
Unless we're just waiting on someone to figure out another genius workaround, that's the case, yes. Macs are not Linux, for better and for worse.
To be honest it seems crazy at this point an overflow for menu bar items isn't built into macOS, especially now that all their laptops have this notch that can hide menu bar items if you have too many. Plus it competes with space with the dropdown menu items on the left since if an app has too many they'll wrap to the other side of the notch.
Maybe I can redeem myself by clarifying that the real frustration here is with bad macOS UX, not people trying to hack around it. I barked up the wrong tree.