The technique used was w/O1/O2. O1 is Tween20 and O2 is 5% NaCl. TPP was used as the crosslinking agent for Chitosan. But, upon DNA addition to the w/O1 the DNA precipitates at the bottom, Obstructing it from encapsulation.
If you add DNA into the reaction mixture while preparing chitosan microspheres, certainly the DNA will be precipitated, but if you add well prepared microspheres into DNA solution, there is probability of encapsulation of DNA into chitosan microspheres.