The “woman” in that passage is Israel.
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The literal reading in Catholic hermeneutics takes precedence over any other. If St. John wanted to say “Israel clothed with the sun, and the moon under Israel’s feet, and on Israel’s head a crown of twelve stars And being with child, Israel cried travailing in birth, etc” — he could have. But in this, divinely inspired, elaborately written text “woman” is used, and not “Israel”.
Therefore our first reading is that the passage applies to Mary.
Does the passage teach anything about Mary, the Church, and Israel? Absolutely yes. It is very often in the scripture that you read the text literally, and then you reach for anagogical and allegorical meanings. For example, when Christ caused the future apostles to catch an abundance of fish, it was firstly literal Peter, literal Andrew and literal fish. It would be wrong to say,— “No, it was not really Peter and Andrew fishing, because this episode is about converting disciples in the future Church and not about fishing”.
None of these supplemental meanings deny another. Once we recognized Mary in that passage we see what meaning is attached to her motherhood, and through that to her queenship. We see that she has a deep connection to all the children who obey Christ, and so therefore she is a type of the Church; she is, one might say, the mystical Church. The flight to the desert, and the return, and the vision of the stars point to another connection, that to Israel (the number 12 refers to both the tribes of Israel and the Apostolic college).
So no, when someone reads Apocalypse 12 and sees the Church or even Israel, the prefigurement of the Church in it, that is not entirely wrong, but it is selective reading of the Bible if it is the only thing one sees.