Ugly Bastard seems to operate like reverse mythic eyes. As in, he had curse that activates to whoever saw him. Like his whole existence itself is poisonous, so if you can perceive him in your mind, that means the curse is already brought inside you.
Pii-chan detected and is getting ready to fight, but the moment it perceived ugly bastard, it’s already cursed.
Miko seems to be the most resistant, she saw him several times already, but never show herself affected.
Pii-chan’s case brings worry for Seto’s involvement though.
Seto is probably immune to ghosts because he can’t see them, and the Men in Black don’t have “eyes”.
But if Ugly Bastard’s curse can also hit them, would it also reach Seto?
Ok, there’s a lot of bad shit going down but we cannot forget that this rabbit is draining the life force. Sure she had too much and it attracted ghosts, but this is not something to be ignored.
At the end of this arc, Miko will throw it at the ugly bastard like it’s the Holy life force grenade of Lamrabbit, and the ugly bastard finally got blown to pieces while heaven sings hallelujah.