Elmo peed in her toy box

My mom and step-dad bought Kinley the Potty Time Elmo for Christmas.  She really doesn't care much about him....well, the doll.  She loves to hear Elmo singing that "la la la la" song on Sesame Street.  And you know, it never fails that I leave the TV on and Elmo starts singing that song every time I'm trying to rock her to sleep.  And it's like a trance, she sits straight up, points her finger and "sings" with the TV.  So much for nap because then she insists on going downstairs to see this amazing red creature for herself.  I need to remember to turn off the TV when it's time for her nap.  Or I need to sing my lullabies louder, to drown out the Elmo.
Elmo lives in the toy box amongst all of those other prized toys that we felt she "had to have."  And she rarely plays with most of them, with the exception of the whole "let's throw every toy in this box onto the floor" game.  That is the only time that this Elmo and his potty chair get any attention.  It's one of those toys that she'll grow in to.  Right?

So her and I are on the floor playing and she's riffling through the box looking for.....something?  Who knows what....but she's sifting and moving things around.  Ah!  There it is.  A book.  Whatever.  She had no idea what she was looking for....just anything that looked good at that moment.

We go with the book.  She turns it over and over and over and then throws it to the side and crawls over to her blocks.  Okay, we'll do blocks.

And then all of a sudden I hear "Elmo's thirsty, please give Elmo a drink!"  and then I hear him "gulp, gulp, gulp" and he says thank you.  (who's giving him the drink?!)  Then he announces that he has to use the potty.  Kinley and I are both just staring at the toy box.

Knowing what is coming next.

We hear the little diddy of a song.

And then it happened.

Elmo peed in the toy box.

He apologized for not making it to the potty and then says "Accidents Happen! Bye Bye!"

Nice, Elmo, nice.

What exactly are you teaching my child?