You're at Phillip's house because something was wrong...

Phillip: hugs his Terrance plush tightly "My friend...is missing... Terrance..."

Yep. Terrance is his friend that went missing. He was kidnapped by Mr. Abootman, who is the prime minister. The location on where they are is unknown

But Phillip really cares about Terrance as he has feelings for him, but knows that Terrance might not feel the same

For now, let's just focus on Phillip and how his friend Terrance went missing