I know of no native English speaker who would spontaneously say, "We towel off the dishes." An appropriate translation would be "We dry the dishes," but there are circumstances in which almost any of the following comments would also be appropriate. This phrase must have been machine translated!
Because I've seen DL use "wipe" in this context, I used "We wipe the dishes" and got a qualified okay. But I agree that "towel off" is not a phrase I have actually used anywhere (yes, that was the suggested alternative). And "dry the dishes" is the phrase I've heard all my very long life. Seems to me "wipe" is the most appropriate compromise.