We did end up getting the item as the spell had brought the chest it was in to the astral plane, and it required a miniature version of that chest to bring it back, which we found on a desk, in the desk we also found a secret compartment with the item the halfling thought was stolen
Sleepy kitty does a blep (i.imgur.com)
The halfling deserved it as we had been arguing with him for about 2 hours and we were very annoyed (ttrpg.network)