Corrected entry: In the dungeon scene, Jafar in disguise as an old man has just told Aladdin of the treasure. Iago, the parrot, pokes his head out from under the shawl to say, " Jafar, can you hurry up, I'm dying in here." The creators of the film must have intended for the audience to know Iago was concealed in that disguise for a reason besides to point out Jafar in disguise, but Iago was never heard from again throughout the "Cave of Wonders" scenes. Maybe Jafar dropped Iago somewhere when he picked up the horse he rode to the cave.
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Correction: It's only the submitter's opinion that the animators had some ulterior motive for showing Iago hidden in the costume. That doesn't make this a mistake.
Krista