if it chooses a bit too soon there wouldn't be enough clearance for the parked cars
Never mind choosing a lane too soon, at any moment it should detect an object that the Tesla will hit if it doesn't change course, and take action. If possible move over as far as necessary, brake, or both. Which would take precedence over just barging ahead.
Given that one of the objects a Tesla should reliably detect is cars in all positions relative to itself, the Tesla clearly miscalculated the police car's position and size. Not detecting a lane divider that starts at a certain point between the main lanes and a slip ramp, and which doesn't have clear markings and sufficient contrast with the road surface around it I can comprehend. Maybe that one could have been avoided if it had weighed other positional sensor inputs more heavily, maybe not. I don't know. But not judging the correct position of something it will have detected? That's bad.