When Dale's long-held beliefs are challenged he abandons his conspiracies and mistrust of government. At the same time, Hank becomes a victim of excessive red tape and "cover your ass" government types when he gets a new drivers licence that lists him as female.
It's a good way to have Hank's trust and Dale's mistrust of government flipped for some good jokes. This is a cartoon, it's not meant to be accurate to real life. It shows an extreme and unlikely situation to produce laughs and does a good job of it. The government employees trained not to think are pretty accurate to experiences of almost anyone who's had to deal with that particular variety of garbage.
By season 9 it's tough to have new and thought-provoking episodes. They did a good job with this one.
Review of Dale to the Chief
Pretty funny exaggeration of government inefficiency and ineptitude
19 September 2020
Warning: Spoilers