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I still disagree.
The humor comes from absurdity, and the most absurd thing about this situation is the contrast between Santa Claus and a dominatrix. Making Santa more Santa-like enhances that absurdity. Santa's defining trait is wholesomeness, so undermining that wholesomeness undermines the absurdity.
At best you could say that the absurdity comes from the contrast between Santa's wholesomeness and this over-the-top super-spy version of Santa, which I think is what the backstory you added is trying to convey. That's just the same joke with extra steps, with the punchline partially moved off-screen. It dilutes it.
A clean version would be both punchier and more accessible.