For pulling out into the lane, it may have been called “taking primary”.
If the road is not wide enough to pass them safely, that is the best place to be. That way drivers cannot try and squeeze through. Obviously, I cannot speak for the precise road conditions where this happened, but it is legitimate in certain circumstances. Traffic calming is a good example, as it makes the lane too small for a safe overtake. Add in the fact that most cycle lanes in cities are more dangerous than the main carriageway and you can see why cyclists will take the prime quite often.