Chip seal is actually a good way to cover the road to reduce maintenance.
Yeah, until the first couple of snowflakes come outta the sky and the fleet of salt/plow trucks fan out across the county at break-neck speed and plow off all the rock way before any real accumulation occurs.
It’s used with success all the time. It sounds like your town tried to skimp on some stone.
That. Maybe they need to top-dress the existing mess - maybe that'll end the nightmare.