All three things were true for me and I'm still not a furry or Sonic fanatic. Not saying those things are bad but all the ingredients were there and somehow it just didn't click for me.
Only having played Sonic a few times, decades ago, that doesn't help me much. Now however, I have a connection by way of R.A. Wilsons Illuminatus! series,
The Sacred Chao is a symbol of Discordianism or Erisianism, which is a religion that worships Goddess Eris, also called Discordia, the Greek deity of chaos, discord, and strife.
I see videos of the entire series and I have to wonder what's going on with Sonic, too. Because after the original games, it just seems like they have been throwing random shit into them just to see what sticks. One of the newer ones kinda reminds me of a Rust-like game made by a teenager using whatever free assets they could get so everything looks like it came from 13 different games. IDK if that's maybe part of the appeal, but it looks funky as an outsider.
Sonic fan here. The red one is Knuckles, the crocodile is Vector, they are baptizing a Chao. This is just an Absurd humor meme with a Sonic setting, that's it. Is not that deep nor that weird, chill out.