Timmy wishing for Catman to be not guilty is against Da Rules since it states that you are not supposed to free anyone that is in jail with magic since they're entwined with the legal system. However, it is possible that what Timmy did is not the same as what happened in "Parent Hoods" since in that episode his parents were already in jail while Catman was in judgment at that point and was not considered guilty at that point yet, so Da Rules may just not allow you to free people that are already guilty and it is okay with people that are being judged in process.
When Catman says, “And if you’re going to be my sidekick, whoever you are,...”, a pair of Timmy’s yellow gloves in his Cleft costume are gone.
When Timmy says, “But I have to ‘cause it’s kinda cool.”, the heart on his Kitty Boy costume is gone.
Although this episode premiered in 2005, it was produced in 2003 according to the credits.