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You aren't supposed to cover up when working a punch or kick to the head, it defeats the purpose.
Ospreay continuing to move around a guy who probably has a concussion is not something to commend, it can lead to more severe issues with the concussion, but if Naito wanted to continue then you can't really blame Ospreay for that, it's the ref or company not showing discretion or feeling like they can't stop the match or Naito.
The reason the spot failed is they are too close together, they are both close then move even closer as they do the move so it is hard to put the blame on one or the other, they needed more room for the kick to work smoothly