Definitely not Fraggle Rock. My gut feeling is that it's not recycled *but* something about the lips feels vaguely reminiscent of another Muppet design, so I *think* that's what you're recognizing. (That or it will turn out to be something ultra obscure like one of those oddball Nickelodeon interstitials).
While on the subject though, I'll add this chap to the list. It's clearly just a generic Whatnot so not a specific character recycling, but I feel like I recognize the color and nose shape (I'm thinking from some of the home videos, either the Play-Alongs or the Muppets on Wheels kind of stuff). It would just be kind of interesting if we could track down the earliest known predecessor.