Try aiming here, might help.
View attachment 41740
That's what I did and started getting it kinda often. Haven't been able to do it grounded.
I'm starting to think the trick has something to do with hitting the tree perfectly in the center of the tree so it registers as a hit on both sides, yknow? Cause you hit it from the left, a left slice appears, right, right slice, but if perfectly in the middle the game might not not how to react and just falls. But it always falls the other side of Villager...and the model of it perfectly chopped exists, though, so do other things like Palutena's guidance for hacked characters, so this model might be a just in case thing if the game doesnt know what to do... I dunno, this thing is weird. I just think you gatta be frame perfect and hit in the middle.