I always thought this was blue fire Azula shot, but it's clear now that it was actually lightning.
In order to prevent Katara from reaching out to Zuko, Azula shot lightning at the ground between them. She didn't shoot it at Zuko despite it would be easily one hit kill.
She said right after: "I'd really rather our family physician look after Little Zuzu if you don't mind."
Of course, Azula will not let Katara heals Zuko; one enemy is down after all. But this proves that Azula’s motivation is to win, not to kill. And that she was motivated by anger not bloodlust (besides of being in the middle of a mental breakdown). It's the same thing with the Southern Raiders entry; when Azula’s anger faded upon seeing Zuko falling but smiled when he appeared again.
People often forget that Azula in Book 2 and 3 was under orders from her father and Fire Lord to kill her "traitor" brother but Azula was often holding back.
In Book 2, she went against "kill on sight" orders to bring him home in the first real opportunity to redeem him in the Fire Lord's eyes.
In Book 3, the Boiling Rock, she refrained from choosing the easy way of cutting off the lines and choose the hard way to fight and defeat the escapees who Zuko (and important others) was among them
Bottom line: "Azula tried to murder Zuko so many times" is an overly exaggerated take. For the context is that Ozai, the Fire Lord, their father was the one to issue orders to kill Zuko and task his child solider daughter with it, however messed-up it is, because Ozai is the one who wants Zuko dead. Meanwhile, Azula doesn't want her brother dead, she was often trying to make the best of the situation she was in, even at her most emotionally/mentally unstable.
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