Except the antagonist of the Muppets movie knew Kermit was a frog, which is why he wanted to kill and eat/sell his frog legs at his frog leg restaurant. You’re right that no one saw anything unusual about a talking frog (and that is part of the humor), but at least some people recognized that he was a frog.
You’re confusing The Muppet Movie with The Great Muppet Caper. It’s not like there was an effort to maintain continuity throughout a larger Muppet Cinematic Universe.
Except the antagonist of the Muppets movie knew Kermit was a frog, which is why he wanted to kill and eat/sell his frog legs at his frog leg restaurant. You’re right that no one saw anything unusual about a talking frog (and that is part of the humor), but at least some people recognized that he was a frog.
You’re confusing The Muppet Movie with The Great Muppet Caper. It’s not like there was an effort to maintain continuity throughout a larger Muppet Cinematic Universe.