I've noticed that similar to store items in the past, placing this object onto community lot causes townies and sims with high free will to flock to it and become stuck in an interaction loop. I haven't seen any mods for it and since my town is rural and without a grocery store I'd really like to use chickens rather than the omni plant to get eggs. Any hints?

One solution would be to turn down the Fun relief that the object advertises by using NRaas Retuner.

But another way, possibly together with that, would be don't place them on community lots. I've never even considered that, my sims' chicken coops are all privately owned and operated. If sims want to make agricultural products available to others in town, that's what the produce stands are for.

I use the Produce Stand to make eggs available. There are several settings in Retuner that might help somewhat:
From City Hall or a computer>NRaas>Retuner>Settings>General>By Object>ChickenCoopClassic

@igazor - I seem to be following you around this morning . I never thought about the Fun factor. Where in Retuner did you find it

To be honest, I didn't look (can do so later) but just assumed that would be adjustable. If inactive sims are being strongly drawn to the coop, it might be that they want to talk to the baby chicks and argue logic with the evil rooster, or whatever those other interactions are, and might not be after the eggs quite so much.

I'll take another look also. Thanks igazor. I have the arguing with chicken, chicken joke, fight with chicken etc. all set to false. The only options I have enabled are feed and harvest eggs so I'm not seeing too many folks in town going after the chickens.

This is all really helpful thank you!