Should have seen the pedestrian
The lidar in question should easily have seen a person walking a bicycle in the middle of the road. There was some failure that wasn't caused by the lidar manufacturer's "not enough lidars" excuse. Maybe a dog right next to the car might be obscured by a fender, but not a five foot tall person walking a five foot long bicycle on a flat road sixty feet away.
There is also confusion about sensors being turned off. There are two sets of sensors: Uber's self drive sensors which are being tested and Volvo's proximity and braking sensors which are not. You can't test Uber's system if the Volvo system constantly interferes, so the Volvo system is shut off. The supplier of a Volvo system component is just pointing this out, so that their product does not get tarnished by Uber's mistakes.