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The gnome can be found in a part of the map, which is on the left side of the island, being picked up will make a message appear saying "DUE TO AN UNKNOWN ERROR, THE MATERIALIZATION COULD NOT BE COMPLETED. -ARC" only if you have gm_construct 13 beta probably.
The Gnome.
Gnome On Fire.
General
Type
Entity
Nicknames
N/A
Attributes
Hostile
No
Spawnable
No
Cursed
Yes
Health
N/A
Damage
N/A
Event
Event Name
N/A
The Gnome before being picked up is normal, you can also break the door that is locking him inside.