Okay, so unlike the usual White Haired Witch questions, my premise goes as follows.
A 4th level White Haired Witch has 10' of reach with their hair.
They attack with their hair, hit, deal damage, and succeed on their free grapple check.
The target is moved adjacent to the White Haired Witch per grapple rules.
White Haired Witch states that when grappling with their hair, they are not considered grappled.
Can the White Haired Witch then take a five foot step away from their grappled foe, as they are not prohibited from doing so? (They are not grappled. The foe will still be within the White Haired Witch's reach.)