Plot hole: When Chucky is decapitated, no blood comes out. He still has the scars from Bride/Seed of Chucky so that means he's still in the same doll's body. The longer he remains inside the doll the more human he becomes, so he should definitely bleed by this point in time.
Curse of Chucky (2013)
1 plot hole - chronological order
Directed by: Don Mancini
Starring: Brad Dourif, Alex Vincent, A Martinez, Danielle Bisutti
Revealing mistake: When Nica crawls to the elevator to escape Chucky, she bends her legs in order to shut the elevator door. She is meant to be a paraplegic and have no feeling in her legs.
Trivia: The appearance of Charles Lee Ray on-screen during the flashback sequences marks the first time that Brad Dourif had appeared in human form in one of the "Chucky" films since the original. (Although photos of him from the original did subsequently appear in the other sequels, he had not shot any new live-action material in 25 years).
Question: When Chucky killed Barb onwards, where was Alice? Was she in the house, or did she runaway to her gran's at the end?
Answer: It is revealed when Ian checks the webcam that Chucky hid Alice in the closet. She was most likely there the whole third act.
Answer: When Ian is checking the nanny cam, it is reveals that Alice is playing Hide-And-Seek with Chucky, instead of sleep. Chucky hid Alice in a closet, to keep her is not on his way while he is murdering the family.
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Suggested correction: There's no telling exactly how his Voodoo works.
The writer/director even admitted this scene was a mistake. Prior films showed that once Chucky inhabited the doll for long enough, blood and organs would appear. The director simply chose to ignore this for this one scene, and has admitted it's a mistake.
TedStixon