Continuity mistake: Right before Mr. Futterman is attacked by the flying gremlin his coat is already scratched up from the claws.
Character mistake: Given Billy still remembered and recognized him it seems strange Kate doesn't when she mistakes Daffy for Gizmo.
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Suggested correction: Billy spent significantly more time bonding with Gizmo in the first movie - days and days. By contrast Kate had very little actual time with him.
