This is what i found on the internet...
hey i got one of those santa's too that stopped moving. found a rubber belt to be the issue. takes a bit to get him apart to repair (removing arms, clothing, and mid body & head to leave a stand with a rectangle box that moves the santa body i havent fixed mine yet last time i tried i added lots of vasaline to areas that move / rub but didnt help. am going to try new belt when i can get one. Did your santa sound distorted when he stopped moving?
or try this link.
Repairing Singing Dancing Santa
or this one. My Santa quit dancing what can it be Google Search
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