Corrected entry: Unless he didn't feel like it or Daggett's being held somewhere that's secret there's no reason that Clayface, who faked his death, couldn't try to track him down again.
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Correction: There's absolutely nothing in the episode that suggests Clayface can't try to track down Daggett again. That's pure conjecture on your part. And conjecture is not a mistake or plot hole. But just to humor you, as seen in the series, Clayface goes through many other trials and tribulations that take up his time, which might explain why they don't show him going after Daggett in future episodes. Either way... this isn't a plot hole.
TedStixon