James Halliday built The Distracted Globe shortly after his first and only date with Karen Underwood who loved dancing. Halliday most likely built it to take Karen on a dancing date, but they never had a second date.
Parzival and Art3mis visited here because Art3mis believed The Distracted Globe to be the most likely location referenced by the clue for the second challenge, believing that since Halliday created it for Karen, he hated it when he wasn't able to have a date with her here and "the leap not taken" referred to the anti-gravity dance floor. Though this turned out to be a false lead, Parzival and Art3mis had fun dancing before being attacked by I-R0k and an army of Sixers. Using Parzival's Zemeckes Cube, they managed to escape. Before the attack, Parzival revealed his real name of Wade to Art3mis which was overheard by I-R0k, enabling him to identify Parzival for Nolan Sorrento. Parzival also revealed his love for Art3mis who rejected him as she felt he didn't see her for who she truly was and wouldn't love her if he did and her belief that he didn't live in reality.