CP is illegal everywhere. ChatGPT is a legal app. Replace ChsrGPT with another legal product, like Apple: "I don't like Apple business decisions so we ban all Apple products from being used in our town". Apple products are legal. Should they be able to tell you that you can't use any Apple services in their town?
Imagine if every community could tell you what legal products you cannot use privately within their city limits. It is absurd.