That is really trying to understand how the dog thinks. There were several times before where he just ran past CC without even turning his head. So I tend to disagree with your hypothesis but even I have no idea of knowing how we could really understand what he is thinking.
1:48 Eddie reaches into the canister to pick up CC to examine it.
1:49 The canister tips over and CC is lying on the floor the canister is moving.
1:49 Eddie stands back until he has determined whether Cuddle cat is alive or dead. His behaviour is like a dog that has been clawed by a cat at some in the past. "Playing it safe".
1:51 Eddie is now sure that the cat is safe to pick up and carries it in order to smell it for cadaver odour, moving a few feet forward (as seen at other times with items of fabric).*
1:52 he has dropped CC and back to the task of finding cadaver odour elsewhere.
2:02 first pass of CC and Eddie is not even looking at it.
2:09 Second pass of CC and Eddie is not even looking at it.
2:11 off to another room continuing his search.
* I experimented with my own hands (being a bit smelly as I'm often handling dirty things)
1. I could smell my hands at rest.
2. I could smell them having a stronger odour when I walked forward.
The forward motion is like having a breeze lifting off the scent on the surface of my hands. So I suggest carrying fabric objects forward is a technique Eddie has learned to improve his detection rate.
Conclusion: Eddie didn't play or indicate on Cuddle Cat.