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I am going through some official Linux Foundation exercises / documentation.

In a lecture about adding / removing an ip address to an existing connection, the following example is cited:

sudo nmcli con modify "Auto Ethernet" -ipv4.addresses 172.16.2.140/24

Why is the above CIDR used given that it corresponds to 256 IP addresses?

Shouldn't we be using the /32 suffix for unique IP addresses?

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In this case the /24 suffix is used to specify the broadcast domain (your broadcast will reach all of the 256-2 addresses in the subnet), using /32 subnet mask you will not able to connect to anything in your local network (not even your gateway).

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