The footnote is in the right place. It clarifies that the original rules read:
The bunny can be on the same tile as the fairy and the dragon.
But the part in red was removed from WICA because it contradicted the previous sentence in the same paragraph:
The dragon eats the Easter bunny figure (a dragon can't miss that).
Question: How could the Easter bunny be on the same tile as the dragon if it is eaten? Therefore, the part in red must have been a mistake in the final rules.