Ryan Meuleman, 28, faced Melbourne Magistrates Court on Wednesday after being charged over the incident in Melbourne's southeast on May 3.
It's alleged Meuleman, dressed only in a hoodie and underwear, entered the driver's seat of a car parked outside a Pakenham laundromat about 9.40pm.
He allegedly turned on the engine and started moving the car but a woman, who was inside with her two three-year-old children, started screaming.
They fought over the gear stick before the woman's husband, who was inside collecting the family's laundry, ran back to the vehicle and punched Meuleman.
The man pulled Meuleman out of the car and restrained him on the ground until the police arrived at the laundromat, the court was told.
He was allegedly on bail at the time for separate burglary and theft charges.
Meuleman started his bail application on July 29, with his lawyers arguing he should be released to a residential rehabilitation facility to address his drug issues.
Barrister Tom Smedley told the court Meuleman had been abusing drugs since he was 15 when he was involved in a collision with Daniel Andrews and his wife Catherine.
The crash is the centre of Meuleman's defamation claim against the former premier and has widely been referred to as the "bike boy" saga.
Magistrate Phillip Goldberg raised concerns about supervision at the Shepparton facility and the hearing was adjourned so defence could consider possible electronic monitoring.
Mr Smedley on Wednesday confirmed the regional Victorian site could not provide further monitoring but argued Meuleman should still be bailed to the residential rehabilitation facility.
Mr Goldberg ultimately agreed, finding strict conditions could reduce his risk of reoffending or endangering the public.
Those conditions include a ban from leaving the facility for any reason and a prohibition on using any communication device that was not provided by the facility.
Meuleman will be released from custody on Thursday when a bed becomes available at the facility.
His defamation case against the Andrews has been delayed by the criminal charges, with a hearing date yet to be set.
Meuleman has accused the Andrews of causing serious harm to his reputation, after they released a statement in 2024 in response to a newspaper article.
The Herald Sun story claimed a review into the 2013 collision showed police had engaged in an "overt cover-up" and Mr Andrews' story was "deeply flawed".
The Andrews said they did nothing wrong and they would not dignify the "appalling conspiracy theories" by commenting further.
Meuleman claims the Andrews' statement was improper and he should receive aggravated damages.
The Andrews have denied the defamation claim.
10°C