I love sloths; I think they are adorable.
Sadly, I think if I hugged one it would just scratch me to death, slowly, over the course of several hours.
Have you ever held a Koala? First of all, they're not fuzzy and cuddly at all; their fur is very short and hard, like holding a bristle brush.
Second, when I held one at an animal park in Brisbane, it was fine until I started to shift position. Maybe because it thought it was in a small tree that was blowing in the wind, its claws came out, gouging into my shoulders and stomach to maintain its hold on me. Then it proceeded to poop on my arms.
It took three park attendants to pry the little fellow off of me and offer me a washcloth and bandaids to clean my arms and stop the bleeding.