The location of the toy dealer in Baldur's Gate 3 can be seen from the first house you see in Livington. After you find it, have a conversation with him. After the conversation is completed, you can advance the subsequent plot.
Answer: You can see it from the first house you see here in Livington.
Players go to the first house that Livington sees to find his home, and then they can see the toy merchant.
Note that after you found him at the door of his house, he was silenced directly and you can only advance the mission by talking to the deceased.
You can also get new clues after talking to the deceased, and then go to the fireworks field.
After the dialogue is completed, the subsequent plot can be advanced, and it is relatively simple to complete.