A group of about 20 family and supporters packed Perth Supreme Court on Wednesday for Brodie Jake Dewar's appearance via video-link from Hakea Prison.
The 20-year-old is accused of attacking Mr Picton, 36, in Northbridge, in Perth's inner city, in the early hours of December 27.
Mr Picton, who has been lauded as a brilliant political tactician, died in hospital several weeks after hitting his head on the pavement during the incident with Dewar.
His death triggered an outpouring of grief from his family, friends and colleagues, as tributes flowed from the prime minister, several premiers and business leaders.
Mr Picton had advised state and federal politicians, and helped guide WA Labor to a landslide 2021 election victory.
Dewar was originally charged with grievous bodily harm over the incident that was recorded on CCTV, but this was upgraded to manslaughter after Mr Picton died.
A magistrate previously granted Dewar bail for those charges.
On Wednesday, Justice Joseph McGrath granted Dewar bail with strict conditions for an incident with another man on Christmas Day in the Perth suburb of Kalamunda.
These include a curfew between 7pm and 5am, living with his parents, handing over his passport and not entering licensed premises, such as pubs.
Dewar is also banned from consuming alcohol and illicit substances, and must submit to random testing when required.
The court has previously heard Mr Picton was ejected from the Paramount Nightclub due to intoxication before Dewar allegedly attacked him on the street about 45 minutes later.
In the hours before that, Mr Picton repeatedly grabbed Dewar's 18-year-old cousin around the waist and made unwanted advances towards her, according to defence lawyer Simon Watters, who also represented the accused man in court on Wednesday.
The young woman, Dewar and others in their group repeatedly told Mr Picton to stop and go away, but the unwanted attention continued, the court heard.
Mr Picton's advances continued on the street after the venue closed, amid numerous attempts to dance with the young woman before he was allegedly attacked.
Dewar and Mr Picton came face to face several minutes later, after the older man made another failed attempt to engage with the young woman outside a fast-food restaurant, Mr Watters had told the court.
Mr Picton had his left hand in his pocket and was not acting aggressively, according to a police prosecutor, who cited CCTV footage.
He slowly lifts his right hand and takes a puff on a cigarette before Dewar allegedly struck him in the face, and he falls to the ground, hitting his head.
His hand only came out of his pocket once he was lying on the ground.
Dewar is expected to be released from custody later on Wednesday.
He is scheduled to reappear in Stirling Gardens Magistrates Court on February 18.
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