CHAZ is an attempt to build a narrative.
Leftists gather and put up barricades, say their only goal is a cop free zone, that they're "growing crops" and minding their own business. Media and the mayor try to spin it as a "block party" full of people dancing and peacefully protesting. The hope is that Trump takes the bait and breaks it up with the military. They get a powerful scene to play again and again for the next year of "Trump's army breaking up a peaceful protest", on every airwave with every celebrity and personality that can be bought affirming that this is the rise of fascism in America.