Steam fix
- Find the config directory of the game, for example in Steam: C:Program Files (x86)SteamSteamAppscommonAlice Madness ReturnsAliceGameConfig
- Make a copy of the DefaultInput.ini (for backup purposes) and open it (the original) in Notepad
- Find the line: Key_Block = TriggerBlock (Because of whitespace, a search for just Key_Block is recommended)
- Change it to this: Key_Block = TriggerBlock true | OnRelease TriggerBlock false
- Save your changes and close out of the config file.
- Start the game; no need to change any key bindings ingame, your block key should now work.
Origin fix

- Find the folder: Origin GamesAlice Madness Returns – The Complete CollectionGameAlice2AliceGameConfigDefault Input
- Find the line: +Bindings=(Name=”E”,Command=”TriggerBlock true | OnRelease TriggerBlock false”)
- Change the E to whichever letter you want to be block.
- Save your changes and close out of the config file.
- Start the game; go to the configure controls option in game; reset controls to default. Since default for block is now the key you assigned in the config the default controls will reflect this; you can now change the remaining controls to your preference.
Source: http://pcgamingwiki.com/wiki/Alice:_Madness_Returns#Umbrella_Item_Bug

Alice Madness Returns Umbrella Block Not Working

Alice Madness Returns Download
Feb 16, 2014 I got an issue that can not use my umbrella to block attacks. There have some discusses you can find on some forums to fix that, but no one of them works for me. So I try another way to fixed it,if you have same problem like me, you can try this: 1- Find 'DefaultInput.ini' in your 'Config' folder. It should located at: C: Program Files (x86) Steam SteamApps common Alice Madness Returns.