This is very well done! You have a great theme going on here, and I love the physics of how the teddy bear interacts with the claw. I also made a claw machine game for the jam in Godot with a couple friends (that we sadly weren't able to submit in time), and this is inspiring me to think about updating some of our prize objects to be a bit more dynamic, and incorporate ragdoll collisions like yours do. If you ever make some future updates, I think I would like to see a bit more character put into the bears possibly by giving them faces and having them scream or something when they get grabbed. There's a lot of potential!
If you do have any interest in checking out our slightly late (and still unfinished) game, you can find it here: The Claws of Victory