Fred Moore animation...
Animation clean-up by Fred Moore. Images and info via Treasures of Disney Animation Art, p.91-93.
After the dwarfs discover Snow White asleep upstairs. Grumpy wants her gone, but Doc says she can stay. A skirmish ensues. In the end, the sequence was dropped from the film because it "was thought to make too much of the dwarfs' argumentativeness."
I tend to agree. You can view the pencil test video and see it was a bit too much for the story, though the animation is superb.