I think they did a really good job with it. Not to mention that whole song was pretty much fetish fuel in the best way.
With how "toony" TADC was getting in these last few episodes, it was only a matter of time until they either referenced it or outright did it.
I thought it was going to be part of a transition or maybe a deep breath scenario. I didn't expect it to be a straight up inflation/TF sequence, so it was a really nice surprise.
I'm glad they didn't waste it on some NPC either, and used it on a lasting character. Good expressions, sound effects, and shape.
We're in, and then we're out, without drawing too much attention to it and making it awkward for the normies.