According to Billy West, Casey Kasem didn't want to do Shaggy in this film because he was a strict vegetarian and he got offended when he sees Shaggy eating a hot dog or any type of meat.
In this particular movie, I believe the issue was the shrimp gumbo.
Kasem became a vegetarian during the TV run. Prior to that, Shag and Scoob could be seen scarfing all sorts of food; Kasem asked for and was given assurances that the characters would only be given non-meat snacks henceforth. He knew a how many kids watched these shows, and understandably didn't want the characters promoting behavior that he was morally opposed to. The producers thought it was no big deal (he wasn't demanding that the characters become vegetarian to make some kind of statement, just that they not be shown eating meat).
Apparently, the producers of this movie were in love with their shrimp gumbo. When Kasem read the script, he asked that the signature dish they're served be changed to a vegetable gumbo as a condition of his participation. They said no, Kasem said, "K. Bye!" and they had to find another Shaggy.
Must have been some *reallY* good animated shrimp gumbo.
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