I love this scene because it gives Milo character.
He’s murderous sure but he’s still childlike, because outside of testing his abilities the first things he does are things he never could have before, including snazzy dance moves.
The dance scene perfectly shows this, he’s going out tonight in a respectable manner to find another victim, and yet he still chooses to add dance moves and the other things he never could have before. it’s good because we’ve seen the polar opposite version, Morb’s, who had no fun or charm, and had no real attempt at humor, just him getting results and results only.
Aside from that when we see this we get looks at Milo as an actual person, no one is watching him here, so we get the image of a Milo who hasn’t put up any masks or persona’s. Which is why this scene is perfect for character