I became a teacher last year and the amount of incredible, complex, highly coordinated dancing they pretty much all do is incredible. I saw a 5 year old do a whacky fortnite squat dance into a back handspring. What?!
At least I could teach them the Macarena so I had something to offer because goddamn.
You should encourage this and allow them the opportunity to do dance moves as a reward for good behaviour in particular but also good performance - if they all score well on the test or if they have less than 3 classroom warnings for being too rowdy (or whatever) then they get a reward of having 20 mins of dance time at the end of the day.
I mean, if they already love doing it then you are just encouraging the good behaviour by structuring that into a reward system for other good outcomes.