They’re being kind of unfair and silly here, taking a few innocent comments out of context and projecting something crazy. If the song is so wrapped up in Christianity and worship, then don’t treat it like a commercial by singing it on a mass-market singing show. Once you bring any song into that world, interpretations are fair game.
This video sent me down a YouTube rabbit hole, and I found this. Now, I know that Stevie attended Arcadia HS for two years, as did I. But I never knew where the Nickses lived in Arcadia. This guy shows the house but does not say the street name, probably to save the privacy of the current residents. The street is shown so briefly that it could be anywhere.
https://youtu.be/yBNLmQrMQfw?t=131