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Pinocchio’s Birthday Party (1973) - The Constant Bleeder
FACT: Almost all live-action children's entertainment with puppets eventually looks like an acid trip a generation or two later. Sesame Street avoids this due to some combination of skilled puppet work and a "realistic" setting, but low-budget candyland tripe like Pinocchio's Birthday Party doesn't. Lucy is in the sky eight miles high in a purple haze in this story