The drag story hour thing (and pretty much all other culture wars) are designed to keep people outraged at the people trying to fix the country so that the few at the top can continue to other the one’s trying to fix the problems. Cause enough outrage to your political rivals trying to end your honey pot. Keeps the ones who fall for it from seeing past the curtain and the ones you target from being trusted/gaining momentum.
It’s funny… I could’ve sworn I remember a guy from Austria doing something really similar sometime around 1937…