Well you see, there is not a big confusion really, but I want to confirm what Frederick is and what happened to Blue Dog from the first game.

Frederick the Blue dog is a new character replacing Blue dog in the comics, drawn and created by Josh Horsefield, the owner of Wolfy's Hotels INC and the hotel itself.

Blue dog was similar, but he was the older character, popular in the first hotel. After that hotel went down, his character was changed. However, I consider Frederick and Blue dog two different characters, they are fairly different after all.

Now Frederick's role in this game (WH2) is that he was never properly finished for performance, so another animatronic Horse Johnson was added instead of him. However the unfinished animatronic was used to other purposes in the tech as you know.

Blue dog might be dead, but his memory lives on in the hearts of the Wolfy's Hotel veterans in the story.

The others from the first hotel were completely new designed as we know. Minus Benjamin of cource, he has just gotten worse

That's all for now, I must stop before I write the whole story down. Heh.