All our local roads are like this and cyclists cause no issues at all. The etiquette is to ride single file when a car approaches. Larger groups might still ride double file, but it makes little difference to passing as you should be moving over into the opposing lane to pass a cyclist riding single file anyway.

As a cyclist on narrow roads without a shoulder, it is unwise to ride in the gutter as it just encourages marginal passes. I take more of the lane and then move over to create a larger space as cars overtake me. They rarely attempt to overtake until they can safely move partially into the oncoming lane. I just make that decision clearer for them. Occasionally some ass….. will overtake anyway, but at least I have some space to swerve into.