I got to feeling extra creative this evening and made some significant improvements on this example. Now it has the traditional homing attack bouncing and resets the instashield and homing attack abilities on impact, it targets the enemies a little higher on their bodies, it works much better on Metal Sonic, it has a time limiter on the homing attack portion to prevent getting the player stuck in a homing attack state, and even comes with a fancy blue glow.
EDIT: Also attached executable for people who just want to try it out.
SonicWorldsDeltaV1.4.3_homing_v2.zip
SonicWorldsDeltaV1.4.3_homing_v2_exe.zip
DimensionWarped's post in Homing Attack in Worlds 1.4.3 was marked as the answer