Lepidoptera: Psychidae
Metura elongatus
The Saunder's Case Moth larva or caterpillar makes itself a silk bag in which it lives, projecting only the front end of its body from the bag, and which it drags around as it moves.
The caterpillar retreats within into the bag when feeling threatened.
Small sticks are affixed along the bag, possibly to make it more cryptic and increase its strength.