Here is my read on the Chayka Chronicles™ based on reporting by @kentsomers @ramorin_azc @CraigSMorgan @FriedgeHNIC @risingaction @Gambo987 (Thread)

Timeline: Chayka signs an extension last fall (likely 3 + 1 year team option based on conflicting sources saying 3/4 years)
The new CEO throws full support behind Chayka as GM in a Friedman interview released June 11. Interview likely done 1-7 days before publish so ~7 weeks ago.

Chayka gets approached for a job "outside of hockey" ~6 weeks ago. Merulo grants permission bc who would quit as NHL GM?
2 weeks later a NHL owner requests official permission to interview Chayka in order to legally hire him away. Based on @risingaction 's article I believe this was Terry/Kim Pegula (who were previously denied permission to interview in 2017 by previous owner)
Were these two opportunities actually the same opportunity? @Gambo987 says a source told him Chayka lied about the job not being hockey related. What if the Pegulas were looking to install Chayka at a role at PSE as opposed to directly within the Sabres?
That would certainly explain why the Coyotes are so mad at him leaving and why they called him a liar through anon. sources. Note that there's a legal clause where Chayka can't serve as GM or POHO of another team so it'll be interesting what his title is if PSE does hire him.
As for the Taylor Hall dinner, Chayka told the owner and the CEO to start learning about hockey ops when he said he wanted to leave. So they had a dinner without telling/inviting him. Both perspectives on the dinner are valid.
Things to watch going forward include whether either side leaks more details to push their narrative and whether (presumably) PSE can work around the legal clauses and hire Chayka in a role affecting hockey operations or if he'll have to take a break from working for NHL teams.
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