Why was sass-rails gem added to my Gemfile

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Rails 5.2.2
Rubymine for the Mac 2018.3.5

I generated a new application, and in my Gemfile, I see:

gem 'sass-rails', '~> 5.0'

I was under the impression that there's no need to include this Gem, because the Rails 5 default behavior, is to use SASS. Am I mistaken, and this is still needed?

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This gem is needed. Basically don't worry about versions of gems, this is expected. It's normal to have >100 gems soon in your app. And versions are not strict to Rails version.