There can be many reasons why you could randomly shuffle an ordered sequence of elements. For example, a deck of cards.
Shuffling is not a trivial algorithm, since sorting is not - therefore, it is enough to spread the need for a library function.
As for why the list is, obviously, it should be an ordered collection, not some kind of general collection. Only the list and its subtypes are guaranteed. The Collections class does not provide operations for arrays, but you can (and probably should, for performance) pass an ArrayList to this method.
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