Toffee is alive and connected to Eclipsa and here's why.

1. The Movie made an extra effort to not namedrop his in front of Eclipsa.

2. Main quirk of Eclipsa is that she's obsessed with sweets and candies while Toffee's name is always played out as something wierd and not fit for his character when others react to it.

3. Nefcy said he is like Magneto but he hasn't yet shown anything related to him which mean that he need to appear at least in the flasbacks to explain his motivations.