based on the foretelling of the plotline, we can be assured that they're not dead, but simply reach the stage where they can abandon their real body and reside in dream world, that's why Almond said Nutmeg isn't supposed to be able to met them yet, but because he twist his connection with real world leading to him be able go to the void realm where Almond reside, but the risk is in the real world he will appeared to be dead