Last night, I randomly stumbled upon this video of "Mary Had A Little Lamb" while searching up videos about Lambs and Sheep.
Here's the video (which appears to have edited the footage due to looping most of the animation) uploaded by jhuneo2 back in 2009.
The video doesn't have a good description and only says "Children's song" alongside misspelling Mary's name to "Marry". There's also a watermark saying "Sing Vision" on the corner. The animated movie appears to focus on a boy and girl (possibly Jack & Jill) who decides to visit the world of Mother Goose and other popular Nursery Rhymes. Alongside the universe inhabited by humans and friendly talking animals (such as pigs, geese, wolves, and bear making dolls). With Mary's Lamb wearing a blue ribbon around it's neck.
Really curious to know where footage of the animation was taken from. Despite the poor quality, the animation for the characters is surprisingly decent dating the unknown direct-to-video animated movie (or series) to the 1990s. Hope somebody in this forum can help me out (especially from people who might had seen this specific movie years ago).
Edit: Turns out it was footage from the 1997 animated adaptation of "Babes In Toyland".