Continuity mistake: When Ash and friends are going into an alley, Ash's collar changes from white, to blue, to cream, and back to blue. Also, his face changes from skin colour to white. (00:10:27)
Continuity mistake: When Oswald begins testing the joystick, there is a button that is green, but in the next shot, it is blue. (00:16:10)
Revealing mistake: As the camera pans up to Meowth in a crane, a building's windows move with the screen. (00:08:01)
Answer: Yes it ran away because Layla hurt its feelings.