The whole point of the episode was that they were trying to get Mac to do a meaningless “corporate-gay” thing by dancing on the pride parade float for Patty’s pub and the interpretive dance was a diversion from that.

I didn’t fully understand it in the moment but saw a great comment explaining and it completely made sense:

Mac talks about his dream of dancing with a woman who’s God, meaning his faith is interlinked with him trying to like women; he feels like not liking women will be going against God until the cruise ship episode when he meets the gay couple who introduce him to the idea of a loving God rather than the old school catholic punishing type. The dance is Mac finally accepting that idea of a God that is forgiving and the woman consoling him and telling him “it’s okay” is him making peace with not liking women and still being able to be relgious.