Here's an example from
AI Day 2022 - Planning showing how FSD Beta handles temporary occlusions blocking the pillar camera:
View attachment 939541
While this case has the other vehicle moving out of the way to restore visibility, it's not that uncommon for a very similar scenario to have that vehicle stop for traffic, e.g., entering a busy parking lot, or if you flip that vehicle around, it could be a vehicle creeping out to make a left turn, or if you pretend it was a static object like a fence or building when exiting a narrow street/alley.
To be clear, I agree Tesla will handle this with HW3 just like how humans need to deal with these scenarios such as waiting for visibility to clear or slowly creep out hoping cross traffic will stop or reroute with a right turn or avoid the intersection. Clearly some options aren't ideal and introduces some tradeoffs among safety, comfort and progress.