to bug out

ewenwen2007

In the movie \"Fritz the Cat\" (1972) there is a dialogue in a bar which
seems to depend on the meaning of the phrase \"to bug out\". Here goes the
dialogue:
Duke: Hey, cat, how would you like to bug out now?
Fritz: By God, man! I'm gonna bug out!

Guys in the bar (roaring with laughter):
- Did he say bug out, baby?
- Go ahead, baby, bug out.
- Ain't no bug out.
- What kind of shit is that?
- lt's a bug out to him.
- lt's some kind of dance.
Duke: Let's split!

I know that one of the meanings of the phrase \"to bug out\" is \"to split, to
leave quickly\", but I can't figure out the joke, could anyone explain it,
please?

A:
The other meaning is \"to go crazy,\" which maybe is what Fritz meant in
the second line. I can't explain the rest of the dialog. There's no
other meanings given in the Random House Historical Dictionary of
American Slang, although there are lots of meanings of \"bug\" and its
compounds.