Dmasterman;173063
You have to remember GB2 was more kid friendly so adult humor that was more present in the first one wasn't seen as much. It really could've meant that ray & egon were cuddling with it
That's not what “sleeping with it” typically means. Yes, GB2 is more kid friendly, but kids also won't get that joke as they don't understand the “other” meaning of “sleeping with” something.
It was definitely meant as a sexual joke.