Dancing is all about feeling the vibe
Good dancing isn't when you do the correct moves, it's when people can see that you care about what you're doing. That's why "But i can't dance" is a meaningless excuse because the only thing you need is all the confidence in the world, then whatever you do will look good. You're not bad at dancing, you're bad at confidence! If I can see on your face that you're contemplating the next move while you're doing the current one, it looks bad. So simply put, I think the "secret" to being good at dancing is to stop with that nervousness. If you look at praised dancers like Lisa in BLACKPINK or Seulgi in Red Velvet, you see immediately that they're 100% genuine about shaking their body. They're not doing a performance, they are free. When they dance, there's no hesitation, uncertainty or nervousness, there's only joy, confidence and certainty. It looks natural. And with this they take their dancing to another level than their groupmates, even if they all do the exact same coreography.
So, I think people kind of lie when they say they like people who dance well, or sing well, or play well. I think they just want someone who does it with feeling. Or, maybe that's what they mean when they say that, and if so, I'll put down the battle axe and end the beef with the dance and music loving population immediately.