As far as I understand the internal energy of a system , $ U $, is the sum of all kinetic and potential energies of the particles constituting the system.
The first postulate states that $ U $ is a macroscopic equilibrium state function (i.e. described by a small number of macroscopic state variables) and that:
$$ \Delta U = Q + W + C $$
Any change in $U$ is due to heat , macroscopic mechanical work and chemical work.
Suppose we have a completely isolated system (isolated from the environment) , implying $Q,W = 0$.
Now, since it is completely isolated its total energy needs to be conserved:$$\Delta U = 0 $$
Suppose that there is a chemical reaction going inside the system - because $\Delta U = 0 $ it follows that $C = 0$. This makes sense because no matter what the particles do ( form bonds, break bonds, explode...) the total internal energy $U$ is always conserved. Online I have read various definitions of chemical energy, most of them say that chemical work is the energy "stored" in the molecules that gets released when they interact, and we have to take that into account when dealing with $\Delta U$, obviously for an isolated system there is nothing "stored" since $ U = const$.
The question is: Why do we include chemical energy in the First Postulate ? If any ongoing reaction in the system does not change the internal energy of the system ,why include it energy?
If the system is not isolated , then I guess the work from the chemical reaction of the system + environment and the influx of new particles from environment into the system ,make $ C \neq 0 $.
Maybe the better question to ask is: Is chemical work in an isolated system always 0 ?