To reach the Forgotten Path in Baldo The Guardian Owls, head directly west from Maneko’s doorstep to the map transition. In the next area, work your way to the north (the only way you can go unless you push out the boxes in front of the house with a scarecrow). This will take you to an area called the Forgotten Path. You’ll start off in an area with a single frog statue.
Your goal is to reach the area with 2 frog statues, which leads to a place called Muccia Forest.
In the Rodia Library, there is a book called The Lost Woods & the Forgotten Path that shows the below solution for how to make it through this area successfully.
When you reach Muccia Woods, head to the very north of the area to find an X on the ground. Even though the sign in front of it tells you there is nothing there, dig it up to reveal Old Cloth!