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This feature actually worked for me: when the butterfly appeared, I tapped it once, won the level and got credited with 1 butterfly.
I think the key to be credited is to win the level as highlighted by @jk14 .
Otherwise, I will not pursue this challenge further: whilst I was playing a whole episode race, only one butterfly appeared. At this pace, I will have to go through another 4 episodes to complete the challenge within 36 hours. Which I find a bit much considering the reward.
This feature actually worked for me. It took me to pass 4 episodes to catch 6 butterflies:
One butterfly (with gift box sticker) held bonus reward you can claim by tapping it on event screen:
I could not figure out if there is a pattern in levels butterflies appear on, some appeared on skull levels, some on regular levels.
Remember that you need to win a level on the same attempt after tapping a butterfly for it to be counted!
LOL, Good for you! @MannyFae What level are you on? Try it on level 14786+, if you even get a dang butterfly. I haven't seen one since this ridiculous event started.
This has to be the stupidest event King has come up with! And there's been a lot of dumb ones. LOL
Good Luck to y'all and Happy Crushin'