Comparing the syndication edit with the complete episode on ITunes, i'm sad at how much of the first scene of Alex and little Michelle at the mall is cut in syndication. Ellen Latzen really sells Michelle's spunk and disbelief in Santa.

Alex: Let me tell you something, Michelle.
I am definitely Santa Claus.
Michelle: If you're Santa Claus, why are there so many Santa Clauses at other malls?
Alex: Well, uh, that's that's because, uh well, you see... Elves, help me out on this.
Jennifer: Well, you well, you see, Santa is very busy
Alex: Yeah, exactly! Exactly. Exactly. So, uh, uh, uh, I have some of my elves, uh, dress up like me to, uh, pick up the slack. It's-It's the same way that President Reagan can't be everywhere, so, uh, so he sends his assistants in his place.
Michelle: I don't believe in him, either.

The full version is also on dvd if you have that.

I often wonder if Brian Bonsall still believed in Santa at this point, given the episode portrays Andy as a Santa believer.

Here's Ellen Latzen as Michelle Davies:

https://i.imgur.com/U9pe7uu.png

https://i.imgur.com/eFwc7Iq.png