Grignard reagents are sensitive to water. The active portion is the carbon of the carbon-metal bond. (c-mgbr). When exposed to a proton source (water can act as an acid), carbon essentially deprotonates a proton from water, breaking the c-mgbr bond and forming a new c-h bond. MgBr is now lonely (cation), so it forms an ionic bond to counter the charge with hydroxyl (anion).