Not really familiar with Brazil (although I am with military juntas) but I think the spy misdirect helps a lot. If you are slightly observant you will get the gist by the middle of the movie. The spy thriller aspect avoids making the uncertainty frustrating until then.

Obviously by judging the comments it doesn't work for everyone, specially the leg scene confusing a lot people, which I didn't expect tbh. Gay bashing cops isn't a dictatorship only thing.