I have heard that manual transmissions should have the fluid changed because the fluid like automatic transmissions degrades.
No, In a manual transmission, the problem is not so much the fluid degradation, but rather fluid contamination. This contamination occurs over time as the synchronizers, bearings and gears in the transmission wear out. The resulting metal particles then float around in the lubricant. And we all know that oil with microscopic particles of metal in it does not lubricate as well as clean oil. So if these contaminants are not drained out, they will shorten the life of your transmission.