In a large mixing bowl, measure out the Rice Chex cereal and set aside.
In a medium saucepan over low heat, combine the white chocolate chips, peanut butter, and unsalted butter. Stir continuously until melted and smooth. Remove from heat and stir in the vanilla extract.
Pour the melted mixture over the Rice Chex cereal, gently folding to coat all the pieces evenly.
Transfer the coated cereal to a large resealable plastic bag. Add the powdered sugar, seal the bag, and shake until all the cereal is coated in the sugar.
Spread the muddy buddies onto a baking sheet lined with parchment paper to cool.
Once cooled, sprinkle the red and blue candy-coated chocolates and crushed freeze-dried strawberries over the muddy buddies. Toss gently to combine.
Allow to set for about 30 minutes before serving.