The Tavern

It isn't entirely clear to me when you're in danger of confusing yourself with Dazzling Spray; is it just when you cast it at an adjacent wall? Is it a chance or guaranteed?

Should it not give a 'Y' prompt?

Yeah, I believe that is actually a bug in the targetter, afaict, it only happens when you are adjacent to a wall (maybe just a corner?)

If you look carefully, you can see the player is highlighted by the target beam when it happens, if you pay careful attention you can at least be aware of when it will happen and either adjust your aim or position accordingly.