The Christmas story involves real people in real places. One of them is the church where Moira Brown and Dr. Craig Evans are in in the video above.
Joseph
also went up from Galilee, out of the city of Nazareth, into Judea, to the city
of David, which is called Bethlehem, because he was of the house and lineage of
David, to be registered with Mary, his betrothed wife, who was with child. So
it was, that while they were there, the days were completed for her to be
delivered. And she brought forth her firstborn Son, and wrapped Him in
swaddling cloths, and laid Him in a manger, because there was no room for them
in the inn.
- Luke 2:4-7
From a pure scholarly and historical point of view, we don't know if this site was where it all happened. Yet, from the accounts of the villagers, there was a chance that it was here or somewhere nearby in this very important place - Bethlehem.
We have to remember that in the biblical times, animals were often brought into the houses regularly. Joseph and Mary were probably used to having animals around them and moreover, giving birth in the barn or a stable means more privacy as compared to a crowded inn.