To be fair I can see the heavily-western heavily-capitalistic Technocratic Union backing the fascists against the Rationalists of the Soviet Union, made of a lot of disaffected Iterator defectors (and Etherites who liked the idea of sticking the middle finger to orthodox economics), who are now the go-to story by the NWO as to why ItX requires the NWO and Syndicate to run things when they have the second biggest army of the Union. "It turns out that your cybernetic economies implode when you use them on Earth right now. Now do what we say because we're right."
Of course that leads to excitement and we can't have that, the bad guys have to be a monolithic block (except when they defect to the good guys)
Personally, I've never seen the Technocracy as necessarily a purely capitalistic entity. It is in its
modern form, but historically speaking there would have to have been
some branches of the mainstream Union that engaged with Communism--radical leftist thinking was way too common among the intelligensia in the West during the early-to-mid 20th century to be dismissed as an aberration, by the logic of Mage the Technocracy had to have
something to do with it.
The way I've always seen it, the USSR started as an experiment by a small group of heterodox Syndicate young turks who wanted to experiment with inventing a better, new way of distributing capital a second time (Remember, the Syndicate did invent capitalism from mercantilism and it largely worked out--there's no reason for them not to think that they can't do something similar again). Given that the Technocracy has always had a utopian streak, these people eventually get pretty popular to the point where leadership feels the need to throw them a bone and let them put their ideas into practice. Hence, Control lets them go fuck around in Russia, which is at the edge of the Technocracy's control and still heavily influenced by Traditionalists, under the logic that if they fail they all die and if they succeed they'll bring the place under much firmer Technocratic control.
The Communists succeed and start to rule in the USSR far more openly than the Technocracy usually does, but as it turns out the actual economic parts of their program aren't really working out. The wider Syndicate finds that failure by their own embarrassing and begins a long campaign to pull the plug on the "Soviet experiment", causing most of the world to isolate the Soviet Union. Some of the Syndics involved with the USSR give up and leave, returning to the mainstream Union in disgrace. The others more or less get subsumed into the NWO and Iterator elements that come to run the USSR and continue to insist that the utopian "Soviet model" is workable and a superior mode of operation for the Technocracy. Strapped of resources, they also start cooperating with local Etherites to an extent that's considered near-treasonous, justifying this by claiming that the superiority of the Soviet model has even allowed them to reunite the Order of Reason.
Flash forward to the 1930s. Technocratic leadership is getting pretty nervous at the growing near-separatism of the USSR Technocracy from the rest of the Union and starts considering ways of fixing the problem. Unfortunately, WWII happens. Control initially orders the Technocracy to prevent war (No, they don't support the Nazis, because that's stupid), but the Germany Technocracy (which frankly has gotten a lot more disturbingly heterodox than the Soviet one after the rise of the Nazis) goes rogue, and the Union begins to prepare for war (There's a widespread perception that they "supported the Nazis" by dragging their feet until 1941, which happened for a variety of reasons I'll properly delve into in the Leviathan writeup). Control can't do anything about the USSR Technocrats because they need them to fight the Nazi Technocrats--by 1945, the Soviet Technocracy has amassed more influence than it's ever had. Cue the Cold War.
The Soviet Technocracy was never really more than 20-30% or so of the entire Union even at its height during the 1950s, but it exercised very outsize influence during this time and started trying to overtake the Western Technocracy through various methods of subterfuge. They were often on the frontlines of the Pogrom, for instance (in real life the Eastern Bloc was a pretty huge force for bringing things like literacy to the third world). However, after the luster of their WWII efforts in the grand crusade against the Nephandi wore off, people started getting uncomfortable with their heterodoxy again, and Control restarted its long-term plans to bring the Eastern Technocracy back into the fold of mainstream Technocratic thought (after using them to purge much of the leadership of the Five Elemental Dragons from China, whom Control disliked even more). Gradually, the Soviet Technocracy started hemorrhaging members and resources, forcing them to slowly move back into the mainstream from the 1970s onwards. The NWO branch of the Soviet Technocracy slowly begins to advocate for reform and reconciliation, while Iterator hardliners oppose it. After a period of internal politicking, NWO takes control and guides Russia through Gorbachev's reforms and finally pulls the plug on the Eastern bloc, bringing the Russian Union back into the mainstream (What, you thought it wass a coincidence that the KGB/FSB was one of the few Russian institutions that survived through the USSR's collapse more or less unaltered?). This whole thing is used as an excuse to drastically scale down the autonomy of individual national symposiums, bringing Control's authority to it's peak just as the Ascension War reaches its climax.
The Syndicate feels vindicated. NWO claims that all of this was exactly according to plan, and yeah they were totally responsible for guiding the entire world from the end of WWI to the end of history--the Cold War
did help Western governments expand their authority and led to the rise of mixed economies, all while killing off Superstitionist bastions in the East, right? (No one is really quite sure if NWO really planned all of this or if they're just bullshitting, or if it's some combination of the two). Blame for all the Soviets' missteps gets pinned on ItX and Etherite subversion.