"We're raising a nation of squibs," Lucky's dad says, longing for the days when kids had to "suck it up".
At his son's birthday, Lucky's dad insists on playing pass the parcel with the old rules, causing upset among the kids.
But at other birthdays they come to accept the idea of "Lucky's dad's rules" with just one present at the end, telling themselves "maybe next time" when they miss out, the West Australian reports.
The episode got quite the reaction online, with some parents labelling it the "greatest Bluey episode of all time", while others argued it was a "weird swerve" promoting the idea that "kids today are too spoiled by playing pass the parcel wrong".
Psychologist and mum Jocelyn Brewer told the West Australian that the episode "managed to capture key elements of modern Australian society and the challenges of parenthood".
"The relentlessness, the keeping up with Joneses, the lack of clear guidance on how to get it 'right' – and shows the subtle changes in how we interact and connect through things like games played at children's parties," Brewer said.
"Bluey … resonates as it captures so much nuance of the parenting experience. This episode also captures how parenting and childhood has changed over the last generation, give or take.
"Nostalgia for our own childhoods and all that they contained, or didn't in the case of digital technology, has a huge emotional pull. It helps us reflect and re-evaluate what we want for ourselves and our families."