Comment: You have an unstated premise there.

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In post: I'm a Skeptic
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You have an unstated premise there.

Why would knowledge of clandestine criminal activities have to be widely distributed among different state agencies at all levels of command in order to work?

Clearly, it would have to be the exact opposite. My personal hum-drum experience of the state is that the "right hand" typically has no knowledge of what the "left hand" is doing.

Historians have noted that dictatorial regimes often use a chaotic state apparatus so that the dictator himself has more power.

The canonical example of this was the Nazi regime. Senior nazis were typically at each others throats and intrigue was the rule rather than the exception.