What are you doing if you are 'cutting a rug'?

“I was cuttin’ a rug down at the place called The Jug . . .” Lynard Skynard, Gimme Three Steps

Mouth🤪, this song in the mid 70's was the first time I heard the phrase. One of my favorite rock bands, them there fellers!

I’m cutting a rug, down in a place called Jugga with a girl named Linda Lu! Lynyrd skynyrd says it all on what cuttin the rug means.

Charmed, lynyrd skynyrd