Hearing Fantasia's ridicule towards him as well as witnessing his attacks being easily negated, Alister frowned and felt that he had underestimated the power of a god.
Although Fantasia was only in her avatar form, she still possessed her Divinity of Fantasy so she could perform god-like feats despite being at a demigod-level power level.
Alister could feel that even if his attacks were negated when they were transformed into butterflies by Fantasia, the effect of the Never-Miss Targeting was still retained.
In other words, only the sword waves were negated by Fantasia, and those sword waves were transformed into butterflies. Only the Never-Miss Targeting was retained and due to that, the butterflies kept on colliding with Fantasia.