2nd Covid extension until 28 Feb 2021 was no big deal. No embassy letter was needed, only the usual paperwork and a copy of the rental contract.
Immigration officer didn't know about any possibilities beyond deadline of 29th January and advised to come before this date for checking new rules. He couldn't answer, whether it will be possible to go for a 3rd extension by end of January.
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TLDR : Answer Summary
A report from Chiang Rai Immigration indicates that the 2nd Covid extension was straightforward, requiring only standard paperwork and a copy of the rental contract, with no embassy letter necessary. The immigration officer stated that they were unsure about regulations regarding a potential 3rd extension before the January 29 deadline and advised expats to visit before that date for updates.
That is not necessarily correct. At most offices you can apply for a new extension when you have 30 days or less left on your current stamp (and some even allow it when you have 45 days or less) :)
so showing up on Jan 29 is exactly 30 days before their stamp runs out. They could (at least in theory going by the rules) apply for another 60 day covid extension