I contacted an agency and they want to "varify me."  What insight are they looking to get about me.  I mean, they want to know my work phone #, My Drivers lisence #, Provider refrences.  Is this routine? Should I be worried?  Is this a Red flag to stay away?  Are they going to come back to haunt me 10 years from now?

before giving out the information that they are asking for. If they have a website check out their ladies to see whether they have reviews. If there are no reviews or reviews that do exist are so so, you are better off passing on them. If the reviews of the ladies are majority stellar, you should not be concerned about giving them the information.
A VIP membership on this site is worth the pittance that you pay. The membership will pay for itself immediately.

In both cases they are protecting themselves by verifying you're not Law Enforcement(LE). On an even darker note it is a "temporary" paper trail should you prove to be the spawn of Ted Bundy and do something heinous. After all goes smooth the worrisome data you supplied is destroyed.

 You need a credit card and a driver’s license/State ID card to rent a DVD at Blockbuster Video. Doesn't a woman's continued freedom and personal security deserve the same consideration?