Preheat oven to 400°F (200°C) and line a baking sheet with parchment paper.
Chop the semi-sweet chocolate and set aside.
In a bowl, mix cream cheese, powdered sugar, and vanilla until smooth and fluffy.
Place the puff pastry on the baking tray and lightly fold to mark the center section.
Spread the cream cheese mixture evenly in the center, leaving space at the edges.
Sprinkle chopped chocolate over the filling.
Cut diagonal strips on both sides of the pastry and fold them over the filling to create a braid.
Mix egg and water, then brush over the pastry.
Bake the Chocolate Cream Cheese Danish for 25–30 minutes until golden brown.
Melt chocolate chips in the microwave, stirring every 20 seconds.
Drizzle melted chocolate over the baked pastry.
Slice and serve warm.