Yes. The 99th Academy Awards rules allow animated features to qualify for Best Picture. Having a dedicated animation award does not exclude them from the broader category.
Rule Seven permits animated features to qualify in other categories when their requirements and deadlines are met. Rule Twenty sets separate Best Picture conditions. Reuters also documents past Best Picture nominations for Beauty and the Beast, Up and Toy Story 3.
Eligibility is not a nomination. An animation-category entry must separately satisfy the Best Picture rules, including theatrical-release and representation requirements, and then receive enough votes to be nominated.
Animated features can compete in both categories, but qualification and nomination are separate steps.
Academy of Motion Picture Arts and Sciences
Rule Seven, section VI.A, allows animated features to qualify in other categories. Rule Twenty specifies the separate Best Picture requirements.
Based on: Academy of Motion Picture Arts and Sciences
Reuters
Reuters identifies Beauty and the Beast, Up and Toy Story 3 as past Best Picture nominees, confirming that the categories have not been mutually exclusive.
Based on: Reuters
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No. It combined silent-film storytelling with recorded songs and brief spoken passages. Its importance in sound cinema does not mean all its dialogue was spoken.
Yes. The specially designed honorary award included one standard statuette and seven miniatures representing the dwarfs. It was one honour, not eight competitive wins.
No. Silent films commonly had live musical accompaniment. The absence of recorded dialogue did not mean audiences watched in silence.