Charles Lee "Chucky" Ray, also known as the Lakeshore Strangler, is the titular main antagonist of the Child's Play franchise.
Does not appear.
Chucky's appearance seems to be based off the original Child's Play trilogy as opposed to the Stitched look from Bride of Chucky and onward. This is especially significant, because after the first Child's Play movie was a success, Ready Player One Director Steven Spielberg, opted for Universal Pictures to buy the rights to the franchise.
Chucky was among the item in the Avatar Outfitters.
Judging by his use and the amount of Sixers he killed, Chucky seemed to be a parody of unstable scatter weapons commonly used in various action games. In his case, anyone who has him in posession outside the inventory for too long runs the risk of being zeroed out if they aren't careful. Because he's an item and not an avatar, attacking him doesn't affect him; as shown when Art3mis punched him in the face while trying to fend him off. Also Chucky's kill range is limited to seven people. As seen when 7 Sixers were zeroed-out after Parzival threw him at them. One of which shouting "IT'S FUCKING CHUCKY!!" in a mix of shock, disbelief and awe.