New headcanon: After Order 66, Grogu was taken to Naboo, where he had a safe home for a while to recover. Later, when Din Djarin got an N1, it reminded Grogu of the comfort of Naboo and he felt at peace there.
Galoob - Episode I Collection VIII by Darth Ray
Via Flickr:
Galoob - Star Wars Episode I MicroMachines Collection VIII Darth Maul, Sith Speeder with Darth Maul, Naboo - N1 Starfighter, & Naboo Pilot