I have always had a weakness for living plush characters and finally made my own she's meant to be a member of the ever growing cast for the world Sasha and Kole inhabit.

If I ever make a proper story involving those characters Rags would serve as a minor character acting as the house keepr/maid for Sasha and Kole along with being a gaming buddy for Frost a role that would also be filled by Gretchin my goblin gal and her girlfriend Gabby

As for how the living Plushes would work in the series I'm not sure yet since the series would have a mix of weird technology magic and broken physics so they would just kinda exist. maybe they're like the robots from futurama.