It's funny--my own impression of prewar/wartime popular theatre is much more affected by the dirty, sleazy Kit Kat Klub than anything glitzy (with a good side of the Glamourous Wartime Singer in swanky intimate nightclub trope). But this, too, is a popular culture representation--and one with roots growing in the early 20th century performances themselves. By 1900, renowned stars of a truly international variety show/vaudeville scene played to 1000-seater theatres that might have stunning glass roofs (Berliner Central-Hotel) or an elaborate pool for a stage (London Hippodrome). Yet the evolving cultural representation more resembled the low-rent "Tingeltangel" depicted in films like The Blue Angel, described succinctly by a 1904 German court as:

commercial presentations at a fixed place of operation, consisting of musical performances...devoid of any higher artistic or scholarly merit, and which are capable, through their their content or manner of presentation, of arousing the lower instincts, in particular the sexual lust, of audiences, (trans. Jelavich)

The point, of course, is that live popular theatre took and showed all kinds (although in Germany, burlesque would have to wait until the Weimar Republic abolished late imperial censorship prohibiting nude dancing). Even while the rise of film and especially film with sound basically killed vaudeville from 1928-1932, as we briefly touched on in a recent thread here, other forms of live theatre thrived on both sides of the Atlantic and English Channel.

The Kabarett des Komikers in Berlin is probably the go-to example of how an individual company could build a reputation to not just survive but increase the elaborate stagings and starpower of its productions. Despite its origins in "cabaret," Platonic-ally an intimate, table-setting room where actors and conferenciers (think the Emcee in Cabaret or the lecteurs described in the silent movie thread) danced with and broke the fourth wall, the "Kadeko" jumped ship to formal theatre seating of 500 and 900 over the course of its existence. Its involvement with "cabaret"--the theatre of musical "exuberant play"--trended towards the musical revue: an evening of showy performances, featuring glamourous evening wear or outrageous costumes, that may or may not have been linked by a facsimile of a plot. (There are even revues from the 1930s whose plot is "the search for a plot"--the only people who like talking about themselves more than medievalists do are theatre people). That scene from Captain America: The First Avenger has its roots in a popular 1920s-30s production number of women in patriotric dress, eventually military uniform, dancing across the stages of Europe and America.

And on the other hand you had the underground jazz clubs and in-apartment "rent parties" in Harlem, NYC USA, where African-American blues and jazz musicians and singers put up with white "tourists" from downtown looking for...exuberance in more ways than one (in the age before lesbian bars, Harlem clubs became the nexus for New York's early lesbian scene for white women and black womne, although I don't have a sense yet how integrated it was versus nascent cultures sides by side).

Throughout this answer, I've been linking to cultural recreations of pop theatre nightlife to make a point: this was a type of theatre commenting on itself from the very beginning. Max Reinhardt's Sound and Smoke cabaret/revue was even criticized for satirizing only the theatre world and not Berlin society as a whole! The recreations on Broadway, in film, and in revue/cabaret itself were just as much original performances as evidence thereof. And in both "representation of reality" and "reality of representation," the production values, comfort, and extravagance of staging and talent lends a deeper meaning to the term "variety show."

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I'm going to get tangential here, but:

Outside the geographic realm you're thinking of, but Cairo was the Hollywood of the Middle East during that same period and nightclubs were also a frequent feature in movies out of there during that period. There's been a lot of documentation on the actual nightclub scene in Cairo during the first half of the 20th century because it was the birthplace of the stage performance adaptation of the group of dances that fall under the moniker of "belly dance" (they were social dances before that and still are). There are more specific terms such as raqs sharqi that are often preferred since they aren't what an outsider decided to call it and don't carry as much misplaced baggage. The clubs were set up largely to cater to the Westerners visiting or living in the country so were in part modeled after Western clubs. These clubs featured big group numbers, full orchestras, singers, and dancers---many of whom went on to be big movie stars in their own right, such as Tahia Carioca and Samia Gamal (who was also the First National Dancer of Egypt because King Farouk loved her dancing so much). If you want to learn more about this scene, I recommend checking out this compilation of primary sources and summaries about Badia Masabni, probably the most famous nightclub owner (she is in modern raqs sharqi circles, at least). She also sang and danced in some of the performances there. That link is an advertisement for one of her clubs. Carioca is one of her backup dancers at this point. I haven't found any solo videos of Carioca or Gamal dancing at nightclubs. Most of what you find on the internet is from their movies, where they often play dancers at nightclubs. Here's one of Carioca, and another of Gamal. The guy sitting on the right at the table in Gamal's number is Farid al-Atrache, a Druze prince who was exiled from Lebanon along with his family. He also starred in a lot of these movies as the lead male, singer, and composer of the music in them.

But here's the key difference between Egyptian and Western nightclub dance performances. Western nightclubs favored choreography, like you mention. Egyptian nightclubs favored improv, because raqs sharqi and similar were purely improv social dances before they started being adapted for the stage. Even though there were group dances, they were still improv. You had a lead dancer, like Masabni in the video I linked, and other dancers watching her for cues to what she would be doing next. I don't know if all group performances were purely improv, but at most/for the most part it would have been structured improv (e.g., this cue means I'm doing this combination, be in this formation at this point, etc...) because the idea is that you feel the music and do what it tells you to do in the moment. Except for when they were performing Western dances (which they did). I'm sure there was choreography involved there.