This Sweet Little Stray Just Wants To Play!
Digi-Tails are virtual pets from MGA. They come with a Rescue Pets plushie and an adoption certificate which you can register.
Only two versions are known to have been released, including a Golden Retriever and a German Shepherd version.
There's a lack of info about the virtual pets. According to the box, you can feed your pet, play games with it, shop for it, and exchange messages with other Digi-Tails users. MGA's website mentioned that you 30 train and nuture your Digi-Tail.
The virtual pet handheld next to both dogs is mostly a dark shade of blue with some light blue. While the Golden Retriever version comes with a pink and purple handheld and the other one comes with a handheld that's mostly either a different shade of blue or purple, the buttons are colored differently on the prototype version.
I'm guessing both plush toys pictured below are prototypes/samples, since they appear to have shorter fur than their released versions.