This also works on the first snapshot they were added. They will go towards the items, look at the items, and get stuck and not pick up the items.
MC-250579
Allays don't work when Gamerule MobGreifing is false.
Resolved
Duplicate
0
The inability for any mob to pick up items when mob griefing is turned off is intentional design. If allays wouldn't obey that, it'd be an inconsistency within the game rule... Villagers also can't breed with it turned off, that too was resolved as intended by Mojang.