If you listen to the scene it is ridiculously absolutely "take off your clothes". 'Take off and go" is Disney's explanation of what it was saying to get out of blame.
Puh-lease. What is actually going on with the soundtrack is hard to determine. Disney claims that the script calls for Aladdin to say "Good kitty... take off and go", while the closed captioning has him uttering, "Good kitty. Take off." If you listen very closely, the audio track reveals Aladdin speaking the words, "C'mon... good kitty". Just as he says "kitty", a second voice begins to whisper "Pssst... take off your clo..." Who this second voice is, and exactly what he says, is a mystery. No other character in the scene could be speaking; the voice is male (so, it's not Jasmine), the tiger doesn't talk, and both Genie and the rug are below the balcony and off-screen. Perhaps the overlapping voices are just the product of bad editing, or some stray bit of chatter was accidentally grafted onto the soundtrack.