ATF doesn't patrol, they were watching and wanted to get in that house for some reason.
They were stupid to try that based on trumped up Jaywalking or questioning a kid for Jaywalking and expanding that further.
Jaywalking is a city ordinance that federal officers can only assist on and not enforce. The local police showed even more ignorance by supporting the efforts of the feds on the assumption the feds knew what they were doing. From the conversation, while they were there, the local cops should have known ATF does not enforce Jaywalking and should leave.
Then a local supervisor shows up to take stupidity to a whole new level.