Lunch Money - Choke question

If player A plays choke on player B. Then later in the round player C attacks player A, can player A in one instance release the choke and block/dodge the attack by player C?

The card does read "at any time" when talking about releasing the choke, but it also seems to me that choking someone is meant to leave you an open target for incoming attacks.

Yes.

You have the choice -- if you want to defend against the attack, you have to give up the choke. If someone gives you a little 1-point jab, you may just shrug and take the damage. If it's a Hail Mary, you'll probably let the choke go if you can avoid the damage.