Jared Bush, the Director and Writer of "Encanto," tweeted that they had a different ending set for the movie before they changed it to what we know now.
The ending now is very emotional and happy, but originally they planned to end the movie on an end credit joke.
He said that the joke ending had already been animated, so he figured he would show the world what it was. Though the joke is a pretty cute way to end the movie, I think they made the right choice with the final cut. I cried happy tears.