Preheat the air fryer to 350°F (175°C).
Mix the coating: In a small bowl, stir together the granulated sugar and cinnamon until combined. Set aside.
Prep the dough: Unroll the crescent dough onto a clean work surface. If using perforated crescent rolls, press the seams together to form one solid sheet.
Cut: Using a pizza cutter or sharp knife, cut the dough into strips about ½ inch wide.
Twist: Twist each strip several times to create the churro shape.
Air fry: Place the twists in the air fryer basket in a single layer, not touching, working in batches if needed. Air fry for 6–8 minutes, checking at 6 minutes, until golden brown and cooked through.
Butter: Brush each churro with melted butter while still warm.
Coat: Immediately roll or toss the buttered churros in the cinnamon-sugar mixture until well coated, shaking off any excess.
Make the chocolate sauce (optional): Heat the heavy cream until steaming (microwave 30–45 seconds or warm in a small saucepan). Pour over the chocolate chips, let sit 1 minute, then stir until smooth and glossy.
Serve the churros warm with the chocolate sauce for dipping.