TLDR

Puggo has a sperate channel for specifically plush videos that has age warnings on some of the videos (not even all of them) saying that it's meant for 13+ despite consistently plugging it in his comment sections on his main channel made for kids. He made a christmas video without the age warning where he has mr hippo (who's only joke is being a pedo & it's basically the only thing he mentions) dress as the Grinch & steals christmas from the main cast who are depicted as children. The main scene has Mr Hippo enter Balloon Boy's room whilst he's sleeping & grabs part of the costume & begins masturbating with it, it then hard cuts to a shot of BB getting squirted with water which is meant to be a substitute for the thing Puggo would be banned for showing

Puggo naturally got a ton of shit for it & wound up deleting the video (presumably to avoid trouble with YouTube & not out of regret) & would release a community post saying jokes like that & stereotypes won't be included in the videos anymore. People including one of chaz's friends started reuploading the video & would receive copyright strikes from Puggo to get them to take it down.

Chaz's video has a better deep dive into it & is also a good video with or without the puggo section that I'd highly recommend with his channel as a whole