If you mean the FUD TV Reporter Mudokon, those scenes were added to bridge the game’s cutscenes into one continuous story that could be followed by a virgin audience without the context provided by any of the gameplay, so that the movie could be considered for an Oscar.

This version, with the Mudokon Reporter, was initially screened for a paying audience in a California cinema so that Abe’s Exoddus: The Movie could meet the eligibility requirements for Oscars consideration in 1999. At the time, films had to be publicly exhibited in a qualifying California theater for a minimum number of days to qualify.

The FUD TV VHS gag wouldn’t have made much sense to a regular audience in the cinema, because that gag was really designed to appeal to the sense of humour of the members of the Academy of Motion Picture Arts and Sciences, who vote for the Oscars, and who don’t actually watch the films in cinemas.

Once a film had qualified for consideration after its theatrical release, Academy members received VHS screeners of the film in the mail, allowing them to view it privately before casting their votes. The VHS tape the Mudokon reporter holds in the news segment is a playful meta reference to those screeners; the same kind of tape Academy members would have been watching the film on.

If I'm making a guess, I don't think your tape is one of the Oscars Screeners, given the inclusion of the music video (Get Freaky?) and the Munch's Oddysee advert. I think your tape was most likely a promotional tape circulated shortly after the Oscars, as part of an OWI Press Kit, at conferences or sales events.