I think Larry was making fun of people who see Jesus in pieces of toast and potato chips etc. and put all their faith in THAT instead of in Jesus. I watch reruns of Curb at 9:30 and have thought recently that Larry actually has a Jesus fixation - in an interested kind of way.
I’ve always enjoyed Larry David’s sick sense of humor. This was pure ridicule rather than his usual m.o. of finding humor in everyday circumstances and human frailties.