Flamestrike
Legend
Unless you are an elf or halfling of course. Specific beats general.![]()
The specific just changes what they can hide in. It doesnt change the fact that they cant do it while being directly observed.
They can (of course) hide while observers are 'nearby'. As can a human crawl into a box while observers are 'nearby' (and hide).
Neither can do so while those observers are staring at him. You cant attempt to hide (not 'hide action' as a game term, but 'go into hiding' as I understand the term in plain english) from a creature that is watching you.
Once hidden (assuming they can, by virtue of not being observed going into hiding) then our Elf becomes pseudo-invisible (even - to quote the Sage advice - from 'eyes staring straight at the elf!') to anyone with a lower passive perception than his stealth check result.
If the elf cant hide (by virtue of me watching him jump behind his ficus) then he remains perfectly visible.