Most of them exploded or melted. But there are a few dead that still have foreheads.
Of course when Daisuke does that to one or two of the dead, it greatly disturbs the villagers here. Because... well... it's creepy to anyone who doesn't know what's going on. They aren't part of his world and just don't get it, because hollows don't happen naturally in ACRO near as I can tell.
Which may explain why a few of them are less than politely asking him to leave. At least they haven't started grabbing the pitchforks.
Unless the black butterflies are invisible to them. Then the above isn't quite right.