“Sesame Street,” prepping for its 46th season this fall, is giving its iconic neighborhood a new look. Digiday took a tour of the new set of the public television stalwart and found some big changes.

As Sesame Street’s 56th season gets underway, Elmo, Big Bird, and the Sesame organization are navigating a volatile chapter in the show’s history—marked by government funding cuts, evolving new media ...