I don't buy any of the excuses, honestly. If the software can be that easily fooled by slightly broken white lines, it's not ready for release. That area of 101 simply isn't that difficult to parse (for humans). If it can't deal with that, how can it driven in places where the roads are truly awful? Lots of places in the USA alone with much worse road conditions than anything CalTrans is responsible for.

Also, there's a huge yellow and black chevron block visible in that picture that any human driver paying attention would have seen and easily avoided. Crosshatching is unnecessary if you're paying the least bit of attention to what's in front of you. What was the software's issue here?

It is absolutely a problem with the Tesla software that it wasn't able to parse that area properly. Doesn't necessarily mean the human driver wasn't at fault.