Tanya thinks this stupid dance will convince the brass that she has lost her mind and must be taken out of active duty and put in a sanitarium. Rerugen thinks the Devil of the Rhine is deliberately making a fool of herself to show how the brass values her too much to even consider reprimanding her. Zettour, who is off camera, thinks Major Degurechaff is showing a routine she developed to raise morale, and will make it the centerpiece of a propaganda event.
Dumbass question, but how really attractive would Marisa be for the average 19th-century guy in Japan? I would guess she would be deemed as too "eccentric" for the time.