I received the following email from a fellow cacher:
Dear catcher24, I think Wandering Woody was taken by a muggle. When visiting the "Middletown Inn" I counted only three TBs in residence and by process of elimination it must be Traveling Woody who has checked out by a geo-muggle. He actually signed the log as "not a geocacher" and he "stole" an item. Probably a school kid playing in the park. So, evidently Wandering Woody has entered into a new phase of adventuring.
So it would appear that unfortunately Wandering Woody has been taken out of circulation. I hope he shows up again some day, but if the kid who took him enjoys playing with Wandering Woody, I guess it's OK.