[0] https://en.wikipedia.org/wiki/Ö#In_English, https://en.wikipedia.org/wiki/Diaeresis_(diacritic)#English
Hmm maybe it's because it looks exactly like an umlaut and is often placed exactly where an umlaut would be placed?
Of course, N.Y.C. is probably just as correct as NYC, but they do it even when it is manifestly wrong.
One example is I.B.M. The major N.Y.C. media all spell it with periods, even though IBM itself does not use them.
Another is the SOS Morse Code distress signal, which the New Yorker spells S.O.S. with periods, seemingly in the belief that it is an initialism.
SOS is not an abbreviation or acronym or initialism at all. It is not even three separate letters when sent in Morse Code. It is a "prosign", which means that it is a single long Morse character, not sent as three separate letters with pauses between them.
It would be properly typeset with an overscore above the three letters, and no periods, as shown in the Wikipedia article. The overscore indicates that it is a single long character, and the letters are just a way to remember it.
They also insist on misspelling 'ensure' as 'insure': https://www.newyorker.com/news/news-desk/how-an-elite-univer...
I think they're just abusing their poetic license at this point, with the amount of times they choose to use archaic spellings and meanings of words, and I wish they would actually stop.
M-W agrees, and not even marks it as archaic: https://www.merriam-webster.com/dictionary/insure
Likewise here: https://ahdictionary.com/word/search.html?q=assure