Allay needs a short flee-on-hit behavior to avoid blocking the reticle

The Allay often obstructs the player during mining, building, and block interaction because it hovers at eye level and follows very closely. When struck, it plays its hurt sound and shows knockback, but immediately resumes hovering in front of the player. Unlike other passive mobs, it doesn’t move away when hit, often blocking the player’s targeting reticle and preventing interaction with blocks behind it.

This is especially problematic in tight spaces, such as 1‑wide, 2‑high tunnels, where the Allay can drift directly into the line of sight. It often fails to navigate behind the player, forcing awkward jumps, crouches, or maneuvers. Even allowing it to temporarily pass through the player when struck would ease these situations.

The core issue is that the Allay lacks a “move aside when damaged” behavior. A simple, short displacement—like a 1–2 meter sidestep or small flee burst, similar to sheep, cows, bats, and squid—would clear the player’s reticle without disrupting item delivery. This preserves the Allay’s intended personality while eliminating its most frustrating behavior.