Probably keeps setting sleep animaton every tick. Make sure it runs only once, once player falls down, otherwise it will be stuck at frame 1 because it keeps repeating ( play sleep animation ).
Also when using physics, probably better to use a dummy object with physics behavior, then pin actual animation sprite to that ( no physics on this one ) , so frame changes don't interfere with physics. Hide dummy object on a bottom layer under backgrounds once it all works the way it's supposed to.