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Once you reach step (4) on Past you have the chance to stop a Shakespearean drama right when it is about to unfold. Enter Pops' house in old Rococo and hear him accuse Coker of stealing his family's heirloom.

Talk to Pops and he'll throw her out. Follow her to her house and talk to her cat using the Relay. The cat tells you that a mouse has taken the heirloom. And it also tells you where in Pops' house to look for the mouse hole.

Go back to Pops' house and search the northern wall between the shelves. Turn into a mouse using Change and go through the mouse hole. Take the Jewel and everything else you want. Then return to Pops.

You do not have to equip the Jewel. Just talk to him. He'll rush out to apologise to Coker. Family feud averted.