Yes, the hug button is back.
http://www.nintendoworldreport.com/news/58552/a-boy-and-his-blob-2009-coming-to-switch-soon
A much-loved remake from the Wii era is itself getting re-released on Switch.
The WayForward-developed A Boy and His Blob, which originally launched on Wii in 2009, was confirmed for a Switch release this fall. It will be published by the retro specialist publisher Ziggurat Interactive, who recently published WayForward's BloodRayne games on Switch as well.
Based on a 1989 NES game headed by former Atari programmer David Crane, A Boy and His Blob features a young boy who can throw different flavors of jellybeans at his pet blob to make it transform. The Wii remake added, among other enhancements, a button that allows the boy to hug the blob on command.