I did not find the Krakens! I just tried again, and still couldn't find them, I was trying things with the barrel and eventually there was a little symbol on it (was that a kraken?) I assume one of them is near the beach where the undesirable sunbather goes, because I found a spot that emits noise when interacted with, but couldn't figure out how to do anything with it... That being said though I was able to beat it this time! Really at a loss as to why that left house didn't drop to 0 on my first playthrough.