YUROP

Käpt'n Blaubär der Film is in German

but it's a bit culture specific. German children TV has a pretty long running show that does "how it's made" for children + small, probably only 5 minute animated stuff and at the end a puppet/animated show of this old bear telling his grandchildren weird made up stories that he claims are totally true.

Obviously this is feature length. So in this movie, his old archrival shows up, and kidnaps the kids. Grandpa has to roll up his sleeves, and go save them. And of course do wild stuff that sounds totally made up when he tries to tell the kids later.

It's wacky entertainment in the best way.

https://www.imdb.com/title/tt0215919/