Line a deep 8x8-inch pan with foil, pressing the foil into the corners. Lightly grease the foil with a little of the 1/4 cup unsalted butter (reserve the rest for the fudge mixture).
Place the remaining 1/4 cup unsalted butter in a large microwave-safe bowl and melt it in the microwave until just liquified.
Add 5 cups milk chocolate chips and 2 cans sweetened condensed milk (28 ounces) to the melted butter. Stir to combine.
Microwave the chocolate-condensed milk mixture in 30-second increments, stirring well after each increment, until the mixture is smooth and shiny and the chocolate is fully melted (about 2 minutes total, depending on your microwave).
Stir in 1 tablespoon vanilla extract until evenly incorporated.
Pour the smooth chocolate mixture into the prepared pan and spread it evenly. Refrigerate until firm, about 3–4 hours.
After the fudge has set, place 1/2 cup dark chocolate chips in a small microwave-safe bowl and melt in short 15–30 second increments, stirring between each, until smooth.
Drizzle the melted dark chocolate over the chilled fudge and immediately sprinkle 1 tablespoon chocolate sprinkles on top.
Return the pan to the refrigerator for a few minutes to let the drizzle set, then lift the fudge from the pan using the foil, cut into squares, and serve.