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This is often done by people while the project is unstable. No need to write documentation that gets outdated every few weeks, when you can help people live in discord.
There is a gazillion options without having to use a login walled proprietary solution.
It shouldn't be done at all. If you're updating discord, you're writing something. That something should be, at the bare minimum, in a README file.
If you can't be bothered with Markdown, just do text.
I've never encountered this in the wild so I can't say for certain why a FOSS project would choose to do this.
Maybe they are trying to get more people on their server?
Discord uses a subset of Markdown for message formatting, so they'll be writing it regardless
And when the project is stable, they don't care to document it, either.
The first doc you write is the FAQ and let it handle the common requests -- no need to 'live' in discord. Locating that where more people can see it is normally obvious.
Sounds like a project I don't want to use until it finishes baking.