His appearance does not affect gameplay and is only there for aesthetic purposes.
He is the redesigned version of the original Freddy Fazbear.
If one looks closely, it would appear that Toy Freddy's knees are bending into where his knee caps would be.
His position while in the hallway can be revealed via the Flashlight.
Five Nights at Freddy's 2 Main Menu.
Description: All toy animatronics on the stage, brightened and saturated for clarity.