Dems successfully completed their main mission; take over left-wing movements (or at least groups with potential), take them over and turn them into "voteblue" movements, then destroy them. Sure, this isn't purely the doing of the DNC (some leaders of the BLM movement were killed by cops, some sold out, some walked away), but as soon as Trump became president - especially when he started to attack Kaepernick, this started to happen. Then on 2020 election day, Dems immediately started blaming the BLM/defund movement, even after they successfully turned it into a "vote blue no matter who" movement.
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They're basically a lib PR group that misleads people about what BLM is. The damage is the same as lib misinformation in general: difficulties reaching people with the message of radicalization, people going down a lib pipeline rather than socialist pipeline, having to explain why you're not responsible for the things done by the lib recuperation effort.
One thing for sure they do is get funneled a lot of money from regular people who want to donate and help out BLM and these donations of course hardly trickle down especially for mutual aid like keeping black moms housed and kids fed. If there was no national org I think it's safe to say every city with a BLM would be able to do so much more with they money that should be going to them.
The national org can beef with, undermine, confuse, and ultimately excommunicate local movements.
Its not a big deal for existing members, but this kind of co-opting undermines efforts to grow, develop, and communicate between local chapters.
Look up the history of the LaRouche Democrats. Its basically that, but for every progressive movement now.