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Little Big Bird is frustrated with his quest to be turned back to his regular size, and Mike reminds him that he has to believe in himself and keep going, despite the obstacles he's facing. When Mumford brings Big Bird back to his normal size, he also turns Mike into a huge ladybug. Mike wants to play chess with Alan and Gordon, who seem to be a bit more interested in finding Mumford.
Big Bird observes that Mike doesn't sound like a ladybug, but Mike informs him that not all ladybugs are ladies.
A similar puppet is seen in Elmo's World: Bugs.