It's Bugsnax!

"Bugsnax is an adventure video game developed by independent game studio Young Horses. In the game, players explore a mysterious island and attempt to find and capture the eponymous half-bug-half-snack creatures. The game was unveiled via an announcement trailer shown during Sony's PlayStation 5 livestreamed reveal event on June 11, 2020. British indie pop band Kero Kero Bonito performed the game's theme song, which was featured in the announcement trailer. The game was released on November 12, 2020 for the PlayStation 5, PlayStation 4, Microsoft Windows, and macOS."

Clumby from Bugsnax wearing a sign that reads 'Beware Jumping Gay Walrus.' The sign has an overlay of the walrus-like face of Lizbert, another character from Bugsnax.
©2020 and beyond idk i never read the toy story