The confusion strictly stems from this whole construction blockage. I think everyone agrees what should have happened if there was no construction.
The driver's handbook is very clear when it mentions "obstruction close to the corner" on right turns. Whether it is a left turn or straight oncoming traffic makes absolutely no difference. They are both approaching from the left and will be traveling in the lane being entered. The person on the right must yield unless for whatever reason construction isn't classified as an obstruction.