It is a cold forested area on the bottom of the mountain, which can be accessed from Snaxburg and connects to outer biome Frosted Peak. Chandlo made his debut in Snaxburg Gets Spooked, entering town to check on it and pick up some stuff, lowering the drawbridge permanently and thus opening the area as accessible.
Chandlo and Snorpy have made themselves exceptionally comfortable in their own area - as they are responsible for the architectural structure of Snaxburg (and other areas that require build) - having set out various launchpads, built a watchtower, a basketball court, a cabin to live in and even a hot tub from the hot water that pours out of the mountain.
The Bugsnax native to here are all mostly sweet foods, and are mostly docile. The only fully aggressive Bugsnax found here are Bopsicle and Big Bopsicle, which will attempt to attack the player on sight.
The Sugarpine Woods provide a likely encounter with the Snaxsquatch as it spawns on the right side within the woods when entering the area. All other areas have it obscured in sight and require sleeping in the area to have it appear. Wiggle specifically refers to this area in her interview as a place where she encountered the Queen of Bugsnax and as such chances are high it will be encountered, making it deconstruct once looked at for a second. Walking a bit further, a backpack with a videotape can be found, functioning as Wiggle's interview key item.