The entire talking point of FSD is that it's supposed to be better than human drivers. This ain't it.

>it didn't "veer" either, it performed a normal turn.

The definition of veer is "to change direction". This did that. Stop arguing semantics.

>The pedestrians had just started crossing

I fail to see how this matters at all. Even if the pedestrians hadn't started crossing yet, and were still on the sidewalk, it would have been wrong for the Tesla to make the turn without yielding to the peds.