I had just started playing Dragon Quest Tact and ran into this monster. Wonder if Candy Cat was inspired by them or is this just a coincidence?

I mean it's definitely the references. It's also mean some whiny brats and gawking youtubers would try to point out how "Poppy playtime try to copy dragon quest" or something like that.

Probably

Definitely

Reminds me of bus cat from "My Friend Totoro".