Yes, I agree with you that we can't assume that the car could have noticed the woman from 120 meters from LIDAR data alone. Maybe with some kind of sensor fusion with IR-cameras.
But, as it got closer and what the computer though was noise was on about the same place a sane obstacle finder should have given a posetive match. Maybe at 30 - 40 m worst case?
At 142 feet the woman probably had (assuming she was 5.5'):
asind(5.5/142) = 2.21* => 2.21/0.4 = 5.5
So between 5 and 6 "scanlines" going from left to right over her.
Assuming she was 2' wide that's 0.8 degrees which would be 2 to 3 pixels in breadth according to your spread sheet.
That's between 10 and 18 pixels (voxels?) that stand out clearly from the flat road around it, exluding the bike.
If you wan't to get an idea of how LIDAR data looks Velodyne has free samples and a viewer for less resolution models.
http://velodynelidar.com/downloads.html
It pretty hard to identify obstacles far off, but you will still see there is something there. It's especially easy to identify obstacles that are vertical.
As she got closer, she would eventually show up clearly on the LIDAR data. But since the car never slowed down or went left, it didn't notice her at all even at point blanc (or did see her but failed to do anything about it).