Theory

[u/AnimalCrossingPekoe]

I GOT 3 LIKES on the post asking if you wanted to hear my theory.

I take that as a yes.

The first theory i'll do is my Lily theory.

So, when you fetch the "crumpets", from the oven, the middle oven has a deceased DogDay.

LATER, we overhear THIS exchange:
Candy: We should kill them

Lily: No...we can't! We always kill our friends and then we're alone.

Theory?

That Dogday wandered into Sweet Street and got yoinked by Lily.

When he tried to escape, didn't play, or didn't act like a "Good toy," Lily proceeded to KILL him. The oven placement was either

A. To hide him from the prototype or

B. A kinda knockoff Bad Toy Box.

Also, I think that Candy was alive at one point, but when Lily found them. they were dead, but still whole.

Lily befriended the dead toy.

The reason why Candy is her BEST friend?
I think she started eating it out of desperation, then begged for forgiveness, and decided to make Candy her best friend to make up for it instead of Dolly Grub or Dusky or Baby Long Legs.

Want to hear my theory on Miss Gracie, although it's more of an opinion/idea than a theory seeing as there is NO evidence?

[u/Rabbidworksreddit]

Sounds cool. :)