Before you watch it, there are some things you need to be informed about. The film is not really meant for the younger side and doesn't really have that much "sparkle and rainbows" for kids. The film is rated PG so you could watch it with your kids, but there is going to be an awkward talk if they ask about certain things because it does include fascism, war and more. The film does still have small elements from the "original" Disney Pinocchio but is completely different and does have some deeper messages that the adult/teen audience will like.
The film is great from an artistic standpoint. It is super detailed and well thought out. The stopmotion can be nauseating with the smoothness changing at times but this adds a unique taste unlike most computer animated movies. It also feels alive and other than the purposefully crafted imperfections it is pretty hard to find normal imperfections in my opinion.
The film does a great job of representing certain parts of real life. Some examples are: the grievance of a father, war and it's effects, personally motivated manipulation, how gullible a child can be, etc. And if you can pick up on these points, ooh boy does it get sad as it's pretty realistic. They don't hold back unlike Disney and show that there can be bad sides of people (even the good ones).