I have limited experience with these fish but I'll tell you what I know.
I had 5 yellow tail blue damselfish in a 20 gallon quarantine for about 2 months. They were the only fish in there were constantly engaging each other, but mostly the biggest being the bully.
They now live in a 75 gallon display tank with 2 clowns, a yellow tang and a kole tang. The damsels have been completely passive for about 7 months now. They stay evenly spread out in the tank and never bother anything. They have turned out to be excellent tank mates.
So is it the bigger tank? Is it the other fish? I don't know, but their behavior has definitely improved since the move.
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