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There are two set of islands. You enter the first set of islands then talk to Grandpa at the top, this sends you to 2. set of islands now you need to jump to that Grandpa NPC again. It should now teleport you to TC. (If I remember correctly, when you die at the first set of islands you get revived to second set of islands and if you die there you get to stone city)
If you've done that already, I have no idea what causes it.
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