Continuity mistake: When Butterfingers urges Princess Toadstool to stay, her leg bracelet disappears. This also happens when they run away from King Koopa. (00:12:14 - 00:14:34)
Revealing mistake: When King Koopa tells Dr. Sheldon to make a potion that will stop Princess Toadstool, he is briefly layered between a podium and a bag. (00:12:28)
Answer: "Club Mario" was reruns of the original show repackaged with new live action segments. It was a cheap way to present the old animated episodes as a new show. Club Mario was incredibly unpopular and eventually reruns of the original show with the Captain Lou Albano segments were aired in its place.
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