Does anyone know where they're being moved??

Just to be clear, did you get a 112 or a 1:12?

All of the sleepy seeds have to be collected. Whether or not you need to complete the 3rd ending as well is somewhat debatable, since you would have collected all of the items and finished the game before that, but I would personally say that you should definitely have to, especially since it gives you a unique cutscene.

Now, whether or not to require the sleepy store items is another matter entirely...