I've always wondered why such people don't live in a rural area. You could literally set aside parks for people wanting to live in this fashion, used to living in this fashion, but also provide facilities (bedding, small cabins, water supplies, washing machines, etc, etc).

You'd need, I think, to have security guards on hand. Not to stop drug use, but instead to stop violence against other homeless, to intervene if medical attention is required, and so on.

While the costs would be higher than some other solutions, it would be lower (I think) than paying for private housing.

Of course, you'd have to force move people, and that's not going to happen. That is, unless you make squatting in a park a crime, and the result is "you're going to be incarcerated in this very nice outdoor place" the "jail".

Maybe a medical order.

My point is, I don't see an issue with some of your logic. Some people won't transition to inside living, or being close to others.

But if you take people used to living in parks, move them to a park with cabins(tiny homes), and state run water/facilities, the cost might be the same, but they'd have a warm bed, etc.