Contacts permission allows Keyboard Maestro to read your contacts. This is used for the %AddressBook% token, and also used in the Feedback form to fill in your email address if requested.

If you wish to use these tokens you will need to enable the permission for Keyboard Maestro and Keyboard Maestro Engine in the System Preferences, Security & Privacy, Privacy, Contacts permissions.

If you try to use these tokens without giving permission, the token may fail, and in some circumstances the system will prompt you to allow permission.