SOMEONE WROTE to define a theocracy saying:
"They believed in many gods and they made ziggurats to worship them... they thought that anyone with a lot of power and money or high in class was their deity and they drank and smoked with them to try and earn the same amount of power. in essence, they saw who could hold the most alcohol"
While this may accurately describe the anthropology of some ancient peoples (and even approximate some modern social orders), this is not in the strictest sense a definition of a THEOCRACY. Believing that the monarchs, pharaohs, or emperors were deities produced only pseudo-theocracies. Rarely did ordinary citizens socialize in these circles lest they see the mortality and fallibility of their supposed gods and realize the fraud; although most intelligent people realized the charade and played along because it did help to keep some of the more ignorant classes in line. Think of these types of rulers like the charlatan professor "the Great OZ" (in the novel, The Wizard of Oz) with lots of authority and flash as long as he remained hidden behind the curtain. In the case of Egypt, the focus of the original question, the Pharaoh had his organization to promo his deity, but few of them truly believed their own hype. SO IN ANSWER TO The ORIGINAL QUESTION, there was never a time when Egypt was governed by a true Theocracy.
A GENUINE THEOCRACY is when a, or The, supernatural being actually leads and acts on behalf of a people group or nation. THEOCRACY only occurs when people, as a nation (of any kind, even a clan or tribal nation) submit to the direct leadership of a personal communicative and supernaturally interactive God. The nation is governed by the laws, statutes, and ordinances laid down and governed directly by God or, although it is sometimes administered through human representatives, yet with evident supernatural interventions as needed.
This is not just a shift of power from monarchy to priestly rulers, or to a combination of priesthood and kingship under a priest-king who is merely human. This is God speaking directly with people, with prophets, and (yes) priests, and perhaps even supernaturally appointed judges or military commanders, but all take orders from God. Any who dare to substitute human reasoning contrary to the expressed will of the Deity are unmistakably dealt with directly by God. That alone is true THEOCRACY-coming from THEOS meaning GOD plus -CRACY, a suffix meaning LEADERSHIP, AUTHORITY, or RULE. Just as DEMOS, "the district" or "common people" plus -CRACY means "the people rule"; THEOCRACY means "God rules."
For example, in Judaism (with its national roots in Egypt) the period of THEOCRACY lasted in the longest estimate between the periods of Israel's Exodus from Egypt up to the beginning of the monarchy starting with the inauguration of its first king, Saul ben Benjamin. Others assign a shorter time frame, lasting only from the Exodus through the conquest of Canaan under Joshua.
Throughout the history of the nation of Israel it might be said that there were, even during the POST-THEOCRACY periods, flashes if THEOCRATIC intervention and leadership, but that did not make it a THEOCRACY; 100% God ruled.
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