Continuity mistake: When Misty tells Ash that they should take a break, her bag disappears. This also happens when she says that they may be on a deserted island. (00:02:28)
Continuity mistake: When Ash allows Misty to have a break, there is no tree in front of the tree behind Ash that is closest to him, but in the next shot, there is. Also, Ash's head is turned, but in the next shot, it is not. (00:02:35)
Continuity mistake: When Ash tells Tracey to watch out, the strap on Misty's bag disappears. (00:06:30)
Continuity mistake: When Team Rocket is eavesdropping on Ash and his friends, Meowth does not have a lei, but in the next shot, one appears. (00:09:06)
Continuity mistake: Right before Tracey says that Ash is heading towards a cliff, Pikachu's tail turns completely yellow. (00:19:13)
Answer: Yes it ran away because Layla hurt its feelings.