Why would she walk around with that coat.. They must remain unknown by the mundies, right? So if she walked with that coat.. all the mundies w… moreould look at her and the mundies would know about the fables, so toad found the coat in a different way? Maybe the woodsman stole her coat, she came to search it ( toad had stolen the coat ) and when she came to search it, she couldn't find it or something. That explains why the woodsman was yelling at her like "DON'T YOU KNOW WHO I AM? I AM THE HERO, I WOULDN'T STEAL?!"
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Makes a lot of sense since when you get to the bar he confesses he wanted to steal from Red's Grandma.