Why can't Chucky bleed anymore?

Um that wouldn't be the case. If Chucky transferred his soul into Alice then Alice's soul would transfer into the doll. It wouldn't make sense for her to just transfer into some one else's body other than the one that is being inhabited by some one else trying to take her body.

This is just another example of Don's constant errors in the franchise. I doubt he'll explain around that in the next movie. He doesn't really pay attention to things and just ruins the continuity completely. Allow me to share with you some of these things:

1. The first would be Child's Play 3's setting. This affects the time settings of CP1 and CP2 and Bride. You see, while those two movies are made and released two years apart, it doesn't come off as the settings being two years apart. Mr. Sullivan and his assistant talk about the aftermath of the first movie as though it happened a short while ago and Andy comes off being in foster care for a short while before going to the Simpsons, not some two years. Nothing in CP2 states that it's even two years later so given those two points it's very implied we're looking at less than a one year gap between the films. We only get the two year gap now due to Part 3. Dialogue in the scene after the CP3 credits references the first movie happening EIGHT YEARS earlier, back to when the whole Chucky thing started, not eight years after CP2. Perhaps they meant to say ten years since we have Andy being sixteen instead of fourteen as he was six in the first movie. But the EIGHT YEARS thing would be more fitting as the ten year gap affects the timeline of Bride. Bride takes place in mid-1998. CP3 also takes place in 1998 but couldn't be before mid-way in the year. CP1 was set in the November of 1988 (established by Bride) and Andy is sixteen by CP3 which means the setting of CP3 would have to be past November 1998. But Bride has to come after that and it's not set during the winter time. Could we place it in 1999? Nope, because Seed of Chucky, which takes place in 2004, references Bride happening SIX YEARS before, which would be 1998, the year the movie came out in. Had CP3 stuck with it's eight year gap and had Andy at age 14, the movie would have been set in the end of 1996 and early 1997, and then Bride's 1998 setting wouldn't be affected.

2. Chucky's "Made in Japan" tattoo as displayed in Seed. This totally ruins everything as Chucky was made in a factory in Chicago, so how could he have this? Don didn't pat attention here and forgot details in his own movie! We have to get around this by saying that it's not his actual arm as Tiffany does replace his left arm in Bride with a random doll arm and this is the arm the tattoo is on. But then, how the hell does Glen know how to speak Japanese and even learn some karate moves? It would make sense if Chucky's doll body was made in Japan. ERROR.

3. The whole thing with Nica's mother being tied up by Chucky makes no sense. How did she get around to calling the police when she was tied up on the bed?

So yeah, this whole thing with the soul transfer is another one of Don's big mistakes and shows how little he plays attention to the series and not thinking things through all the way.