My family is originally from East Tennessee, back when it was still country, before it became the Branson of the East and I've never heard that. Doesn't mean anything, though. There are lots of things I've never heard of. Doesn't make it not so.
Where I grew up, "three sheets to the wind" just meant carefree and having a good time. I didn't find out until I moved up North and got a pastor friend in trouble for describing him as being "three sheets to the wind" that, up North, it means you're drunk.
But, in any event, I mean I have no desire to and would probably cross the street to avoid them if I saw one of them coming.