It’s been verrified by their operation instructions that most claw machines now and days are pay to win, such as ones made by Sugarloaf. They have settings to where the claw cannot grasp at full strength until the machine has reached a monetary amount set by the machine owner. While it is still possible to win a prize without that monetary limit being reached, it’s highly unprobable.
Best approach is to only spend $1 max at any machine, if the claw seems weak and doesn’t improve by the second try then don’t load any more money into it because it’s highly unlikely you will win. If the claw is gripping strong then have at it for as much as you’re willing to spend; the claw strength isn’t going to reset until the machine verifies a win by tracking an item as it goes through the shoot into the prize bin.
As for actual tips? Only go for a sure thing, don’t play machines where the loader crammed each item into a tangled mess so that there’s no possible point of entry for the claw to wrap around. If an item seems possible to grab then place the claw directly above the item and click the control twice to the left in short bursts, then up one short burst. This will accommodate for the claw’s spin and should put the tangs of the claw directly around the item.
Also, don’t go for shit pushed up against the glass. It’s unlikely that it’s actually in the claw’s grabbing range.