I think Michael's confusion over sweat was intended as real. That kind of grossed me out, him licking the cloth but it *was* funny. I do love his Actual Awkward Demon moments.

There's the moment in E1 where he waves Eleanor over to have a seat and watch the movie with the rest of the neighborhood, and as she walks away he makes a little 'happy' gesture. Watched a second time, it could be read as they show misleading the audience - Michael feigning happiness to confuse us/throw us and convince us it's the Good Place.....or it could be genuine on his part, him being excited to launch his experiment in torture, lol.