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Yesh, I got that one.
But I'm left with loose wires and 2 happy locks.
And none of my 4 remaining items fits there. :-(
(Already used the first match)

Uhh there should only be one happy lock so that might be a bug if there is two. If so I apologize!

If you're at the door with the happy lock then you'll have to use the knife on something in the environment to get the key.