I wanted to get details on the contents of the addr messages from a IP node to a TOR node and vice versa. I was able to connect by installing tor and then restarting bitcoin core. It automatically creates a hidden service for me without having to change the config file.
Well thats ok, But i am trying to understand Why Tor node is required ( For Privacy

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Exactly; the biggest benefit is going to be that nobody can see that you're running a node in your home and track you / come to your house based on your IP address.
There are many oppressive governments that do this (also if you publish something online they don't like, or if you criticize them) so having Tor is a huge blessing since it doesn't allow them to track you like this anymore.