adobe character animator can i use free avatar for commercial video?

As Dtull pointed out, the puppets are free to use. The only caveat I would mention is that others are free to do exactly the same things with the same puppets. There would be no exclusivity. Probably not a big deal for a random crowd scene, but more of an issue if you wanted to create a special mascot.

The example template puppets included with Character Animator are all free to use. (a few other related threads: here, here, and here) Hope that answers your question! Pretty sure that also applies to all the built in puppet maker templates, so that's a _lot_ of puppets since some of those have enough options that the number of possible permutations is in the same ballpark as the number of grains of sand on Earth! 😀