Does your toddler do this shy thing?

[puffling]

DD, who's 17monthsish is friendly and likes to shout hello, but if the person she's interacting with is male, over 40, perhaps bearded, smiles back, she immediately withdraws into her shell. She goes crimson in the face and slowly lowers her head. Then she sits very still for what seems like ages without lifting her head. She seems consumed with shame.
Do any other toddlers do this? Will she grow out of it?

My 3yr old dd insisted on wearing her princess costume to WW tonight, she talked non stop about what a lovely princess she was and how pretty she was and then when a few people said 'oh there is a lovely princess' she then decided to get all shy