The Village serves as a sort of a hub, where the player will return once they clear an area. Each time the player returns to the village, something will have changed — such as goats appearing in the graveyard.
So be sure to take your time to explore the village every visit (especially in your first playthrough) or you may miss something, as you might locked out of obtaining certain items if you continue too fast in the story.
Inside the Workshop, you'll find an iron cabinet secured with a combination lock.
Look at the back of the photo found on the table and you will get the following hint:
"Look out the window."
Once you look out the window 3 numbers will be visible and they will make up the combination to the lock which is:
07-04-08
This will open the cabinet and you will be able to retrieve its contents, including the Jack Handle, which is used to open up new paths in the village.
Once you obtain Luthier's Key, you can enter his house, where you'll find a cabinet secured with a combination lock.
On the table is a small note that reads:
"I'll never forget her fifth birthday."
This hints at where to find the combination.
A children's drawing near the stove says "Happy Birthday" and shows the numbers:
27-09-17
This is the date of his daughter's fifth birthday, and therefore the combination to the lock.
Enter the correct combination to open the cabinet and claim the loot inside.