Based on the description, if accurate, the motorist did exactly the right thing, and is in fact required by CA law to merge into the bike lane when preparing to turn right, and is also required to yield to pedestrians in the crosswalk. It's just like a driver making a right turn from the right hand travel lane - if you're behind them, you wait for them to make their turn, or you pass on the left if safe.

Maybe the driver could have stayed behind the cyclists and merged right behind them rather than passing, to avoid delaying them for a few seconds, but the driver did not endanger anyone, and the driver probably did not expect to cause anyone delay because the pedestrian was probably not expected. If cyclists want other drivers to give them the benefit of the doubt about our own safe road use and the temporary inconveniences it causes for others, then cyclists should extend the same courtesy to other drivers, and not get so bent out of shape. Developing a sense of entitlement to the area of pavement marked as a bike lane - or not - creates problems when people expect that entitlement to override the normal rules of the road.