X-men AU where all the Muppets made by Jim Henson are actually mutants
Jim is actually Kermit’s dad. His X gene was dormant as was in most of his kids, until Kermit of course who was… well muppet shape. Later Jim met others that looked a lot like his kid and kinda adopted them into the Muppet family and gave them a place to stay on his workshop as the world was not kind for those that looked a little green. He loved them all with all his heart and they all miss him.
Kermit “The Frog” Henson impact for the mutant acceptance in the world is indescribable and there are many thesis, studies and other research based on his accomplishments (especially at the Xavier’s institute from where he, and most of the Henson’s Muppets as they got know as a group, are alumni)
Sesame Street had Charles Xavier as a guest to introduce the letter X and talk about acceptance and community. He loved every second of it (he was also really proud. They were his students and now they are out there, causing a huge positive impact on the world. He may have cried when the first episode was aired)
Erik respects them a lot. Has many friends among them even. Especially because the Muppets use their influence to help as much as they can. Anti Mutant protests? Suddenly the Electric Mayhem is doing a show a block away loud enough to drown a bomb going off.
Labs doing shady stuff? Beaker and Bunsen are suddenly in you walls and all your equipment are made of rubber now
Miss Piggy will rescue anyone needing help in her general direction with only her karate chops, her purse and a dream and she WILL win.
(They are all invited to their wedding. They may be the only reason Erik and Charles even started talking to each other again. “You are best friends! Friends should talk and be honest with each other. Would you guys try for Elmo?” How could they say no to such a heartfelt suggestion?)
Mutant prejudice is slowly being eroded by them because “how can you hate the muppets? They are just little guys!”
Also extremists have to be really fucking stupid to want to have “the killer of Big Bird” attached to their name and face. Charles Xavier would close his eyes and pretend to not see as Magneto rips you a new asshole
He wouldn’t even be arrested for it. There would be no witnesses for them to make a case of arrest. The first and only time Erik would murder a man in broad daylight and everyone would go “if you see Magneto… no you didn’t”