Chucky lore is a bit weird
When I say weird, I mean more specifically the version of Chucky that went into the fog combined with his skins plus Tiffany.
The Chucky we have in game is intended to be specifically the Chucky from Child's play 2 right after he has a box of good guy's dropped on him.
First thing, his weapon. In Child's play 2, I do believe he was weilding his signature voodoo knife and not a kitchen knife. Though in his trailer, he is seen grabbing the first viable weapon we see so it's possible the knife didn't come with. Then there's the existence of Tiffany and the implication that she was dragged into the realm alongside Chucky and Chucky"s stitched skin which is also from Curse of Chucky and almost a decade or two after the events of Child's Play 2 and before Child's play 3.
I don't know. Maybe I'm just slow and maybe it's just the mundane answer of its the Entity making things smooth, possible and convincing for the Lakeshore Strangler to thrive without confusing things with how much it bends time