I presume you’re talking about the Disney version that used Divine as one of the models for Ursula the Sea Witch.
With all due respect, your question is a bit silly. First, someone would have to get really deep into the (sea) weeds to even know that fact. You can watch a cartoon for entertainment without needing to know every influence that the animator looked at when deciding how to draw a particular character and make it move across the screen. Second, the cartoon character is a female, with a female name, voiced by a veteran female actress (Pat Carroll). It was not intended to represent an undersea drag queen. Third, Divine was only one of the models used for the finished character; it was also based on a real life octopus and on a previous witch character from a 1977 film, and they removed quite a few of the elements that they had used from Divine.
I’m baffled as to why some Catholics feel they need to dig so deeply into everything to see if it’s okay to watch. I mean, it’s a female cartoon octopus! A kid is not going to look at it and think, “Oh there goes a drag queen” or “Oh there goes Divine” (Divine is deceased at this point for quite a long time). And even if you thought the character was not palatable, it’s a villain character, it’s not being presented as any model to emulate.
Your question also seems scrupulous to me. If you have this kind of issue often then you should talk to your priest.