Ares walked right into their illusory world as if he'd been waiting all along for one of them to make a move. More than that, he was unarmed and utterly calm. Neither of those were good signs, given how the colour drained from Diana's face so visibly. He heard the whispered shock before Ares spoke. Thor himself had a momentary distraction of his own, as the illusion fully faded and a giant... floating head with tiny little arms and legs came floating into view on a rocket.
M.O.D.O.K. shined gold in the light of the day, casting a glare that enveloped Ares in its radiance as Thor looked on. When the floating entity spoke, it did so in a nasally, almost whiny male voice. "You could have hit M.O.D.O.K. with that thing! Insolence! M.O.D.O.K. will make you pay!"
A park bench came screaming at Thor, held aloft by... well, nothing. Momentum, maybe, but either way, he got out of the way, letting it crash to the ground where he'd been standing. Diana and Ares had their staredown and Thor focused on M.O.D.O.K. instead, at least for the moment, thinking the giant head was probably a giant wimp, given his tone of voice, and that meant he probably couldn't take a hit. Thor didn't need to kill M.O.D.O.K., no. He wouldn't even try. If he could get the floating head to float away, Ares would be at a distinct disadvantage and their illusion would be broken.
Flipping Stormbreaker to the hammer side, Thor took a flying leap at M.O.D.O.K. and brought it down, aiming for center mass, in this case, the forehead.