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What would have happened if King Peppy decided to tell Clay about his grandmother's (And Branch's apparent) passing before Trollstis?
Clay would have absolutely freaked.
King Peppy was right in a certain regard, that Clay would not have handled the death of his Grandmother and (apparently) his little brother well. We will delve more into this in the story, but Clay’s mental state at the time wasn’t exactly great either, for multiple reasons. And he had his reasons for not interacting with his little brother during this time.
Had he been told the truth, it’s likely Clay would have completely broken down. The fact that not only was his baby bro gone, but he hadn’t talked to him MONTHS before it happened, the guilt would have eaten him alive.
I imagine after being told, he’d accuse King Peppy of lying, and go check for himself. Just to find a seemingly empty pod (It took a couple days for baby Branch to crawl back up the tree). He’d leave, and lock himself in his room in King Peppy’s pod until the Great Escape, snapping at anyone who tried to comfort him, too overwhelmed is his own anger, guilt, and grief to care about anything else.
He’d only make it out of the Tree because Viva forced him too.
But I’d like to imagine even if Clay didn’t run back for his brother, Viva would have run back anyways to help her father/the other Trolls. Either way, they’d still end up separated.