I actually remember seeing VBirds Perfect fairly regularly on CN UK. The probable reason it hasn't been recorded in some form is probably down to it being less of a TV program and more of a 5 minute ident-like piece of media, which usually aren't as preserved on an official basis compared to actual programming. Pretty sure it was never listed on TV guides or whatever digital format we had at the time. Each episode had a random member of the band announce the show (With the Green Girl only speaking via a Text machine rather than talking), it would then cut to a DDR style Game screen with the chosen band member in the centre doing the dance moves throughout the song, encouraging the viewer to dance along. It then ended with the band member that episode saying "Thank you and stay tuned for more VBirds" etc. This really was something that was in the back of my mind for years cos I was intrigued by the Virtual Band concept after having been introduced to Gorillaz at a young age myself, so anything similar I was all over
I'm glad that you unlocked this memory pushed back down into early 2000s compartment of my brain. I'd often keep thinking about this but just couldn't remember anything other than that vague, ominous voice talking to the girls and something about them being punished by being forced to dance in a machine.
My guess is that they never filled in for Gorillaz' absence on the Powerpuff Girls Movie simply because this was a Cartoon Network UK thing and that was an actual American Cartoon Network thing. That's basically worlds apart.
I never knew cartoon network had their own band The only band from cartoon network I know of is the brenen avenue experience from cartoon network wedgies (shorts from the late 2000s)