The price system, like queuing, is just another way of rationing access to resources. And it’s perfectly reasonable for the government to prefer to impose a queuing system over a price system in certain circumstances. For example, if you don’t want the rich to take all of a fixed resource.
So it’s perfectly reasonable for San Francisco to prefer that parking spaces go to the lucky, persistent, or fleet, rather than to the highest willingness to pay.
And perfectly reasonable too for San Francisco to put a stop to attempts to circumvent its preferred rationing system. Attempts like this.