(Passive) Hero's presence is charged against her foes, dealing damage to hostile creatures who enter adjacency to her for any reason.
A hero with Indignance emits an aura around themselves that deals 2 damage ignoring armor to every adjacent enemy, including diagonals.
The aura damages enemies the hero moves near and also enemies that move adjacent to the hero. The damage is only dealt once for each adjacent encounter (even if this monster takes up multiple squares). However, if a hero becomes adjacent to an enemy, moves out of adjacency, and then somehow moves adjacent again on the same turn, the damage will be dealt twice.
The damage is done immediately when the hero enters adjacency. Passing through is enough; it is not necessary to stop.
The damage is not an attack and does not set up flanking.