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I think the first DVD of Toy Story is also transferred from film. I remember the special features from “A Bug’s Life” making a big deal that the DVD is the first to be directly transferred from the digital files. I think it’s the 2nd DVD that’s a purely digital render.
Nope. The first Toy Story DVD was digital, too. For those who don’t remember, it was actually released on DVD AFTER A Bug’s Life - TS1 and TS2 were released together in 2000, as a 2-pack and in the 3-disc Ultimate Toy Box. (There’s even an intro skit for the Toy Box extras where Lasseter calls back to the “Super Genius Edition” running joke from the Bug’s Life Collector’s Edition DVD set.)
They were both direct from digital, and this was mentioned in the marketing. I definitely remember it looking totally clean and digital. I still have the Ultimate Toy Box set, so I could check it.