How did LIDAR and IR (?) not catch that? That seems like a pretty serious problem.Something is badly wrong there. That should have been detected by LIDAR, radar, and vision. Yes, they need a wide dynamic range camera for night driving, but such things exist.[1][2] They're available as low-end dashcams; it's not expensive military night vision technology.
Radar should pick up a bicycle at that range. The old Eaton VORAD from about 2000 couldn't, but there's been progress since then.
LIDAR has its limitations; some materials, including the charcoal black fabric used on some desk chairs, are almost nonreflective to LIDAR. But blue jeans, red bike, bare head? Expect solid returns from all of those.
The video shows no indication of braking in advance of the collision. That's very bad. There simply is no excuse for this situation not being handled. The NTSB is looking into this, and they should. I hope the NTSB is able to pry detailed technical data out of Uber and explain exactly what happened. In the first Tesla fatal crash, they didn't get deeply into the software and hardware, because it was clear that the system was behaving as designed, unable to detect a solid tractor trailer crossing in front of the Tesla. The result of that investigation was that Tesla had to get serious about detecting driver inattention, like all the other carmakers with lane keeping and autobrake do.
This time it's a level 4 vehicle, which is supposed to be able to detect any road hazard.
The NTSB has the job of figuring out what went wrong, in detail, the way they do for air crashes.
Again, there is no excuse for this.
[1] https://youtu.be/gWqzJF9tOhw?t=211
[2] https://www.youtube.com/watch?v=as12rjzCQnY