In Washington state (I don’t know CA rules), pedestrians have to yield to traffic if they are not crossing at an intersection, but they are still permitted to cross as long as they yield to traffic. The exception is if they cross between two intersections that are controlled by lights, then that is considered jay walking.

“Right of way” and “must yield” does not mean a car is allowed to hit a pedestrian who doesn’t follow the rules of course. The pedestrian is just not following the rules and can be cited for that. But practically speaking, most collisions involving such situations are not faulted against the driver unless some other factor is involved. It’s still a mess for them, however.