There is actually more to this here, it was not just information about Brazilian users, the request was actually to shadowban (block without notifying the users) specific accounts. Some of those accounts happen to be political opposition (actual politicians too) to this judge and his party in general. I believe twitter or musk himself leaked all court documents when this request came in.

Twitter/X closed shop because, after stating that they would not comply with these requests, the judge threatened to jail every Twitter/X employee in brazil in retaliation. So to avoid putting these employees/people in danger they chose to immediately close all offices.

Something similar happened in Argentina with twitter as well I believe, and in that case they relocated most of the employees and their families via political asylum in Brazil at the time, if i'm not mistaken.