I made a video (with very bad sound quality, unfortunately... I might record if I have the time) already outlining that I think that Phantomile is the Dream parallel to Lunatea (which is like the waking world, and then Phantomile is the dreamworld, almost like real world vs fantasy, but in a certain fictional dimension where fantasy is an actual physical place) and since the Empire of Dreams shares the same "twin moon" symbol, it's probably located somewhere in Phantomile and just wasn't featured in the first game (as Breezegale, Jugkettle, and the Moon Kingdom weren't introduced in Lunatea's Veil, but are still a part of Lunatea)
Just saying because, I personally think that is the reason why Huepow is in both DtP and EoD, they just take place in a parallel in which he exists... I like to think that mostly because I want to believe that it's possible for him and Klonoa to be able to meet again in some instances, since it's possible for Klonoa to go to Lunatea in multiple instances, it should be possible for him to go back to Phantomile in multiple instances. He's the Dream Traveler after all, let him travel :sad face:
That being said
I think that the twin moons are unique to Phantomile/EoD but perhaps Lunatea has two moons, we just haven't been provided any evidence of it, yet...
I hope this isn't being too off topic, I was only going off the rail a bit to try to play off of what Sable is saying about different versions of things and such...