In general I would suggest you dont allow him to simply wander the floor. Its a pretty dangerous place for him. He could be stepped on, he could chew things that might make him sick/injured, or find his way into something like the couch. That said, I know how hard it is to keep them up, I keep play stands and rope ladders all over the place to try to keep my Mango off the floor but he still likes to head down there. I would just keep picking your bird up and putting him where he belongs. They are pretty determined so you might need to distract him with something. Its not uncommon for them to be nervous of towels. Birds are often "toweled" to make handling easier for things they dont cooperate with. This is common at the vets, for nail trimming, wing trimming etc. Your bird might just associate the towel with being restrained. Ive worked on it with Mango by rubbing him with my towel to help dry him off after a shower. I also leave his towel close to his cage and let him see it/ be around it quite a bit.