I don’t see how trying to “create anarchy as a state” can use state in any other meaning.
“create a state of anarchy” would work but that’s not how it’s phrased.
Looking more at the comment I could also see it as two separate sentences that could also work: “[…] create anarchy. as a state it’s […]”. But I jumped to explaining what anarchy is because it’s so common for people to not know.