The Hard Candy can be obtained by completing the event with the Lost Soul in the Town area. First, you must interact with a dent on the road railing that is located northeast from the Home. Then, a blue fire that represents the Lost Soul will appear floating near the Protagonist. The girl must then that the alley southwest from where she is. Once she reaches the intersection, she must go down until she reaches the main road. She must then interact with the nearby shrine to send the soul to the afterlife. It will then left the girl a Hard Candy.
If the Protagonist doesn't take this specific route, the soul will disappear and return to the dented road railing.