Each word in a dictionary generates all permutations of itself.
If our dictionary contains the words:
Hashcat generates the following password candidates:
ABC ACB BAC BCA CAB CBA
Note: the number of the resulting lines should correspond to the factorial of the number of characters within the original line, i.e. for a 3 character input we get 3! = 3 * 2 * 1 = 6 password candidates, for 4 character it is 4! = 24, for 5 it is 5! = 120 and so on.
This attack can be optimized if you prepare your dictionaries. See prepare section on the Hashcat-utils page.