What does it tell us? In most accidents there is shared fault.

In this case, the guy was playing a game on his cellphone, no hands on the wheel.

The city also hadn't replaced the safety barrier after numerous past crashes so the life-saving crumple-zone was used up.

Tesla's FSD was engaged and made a very significant mistake.

I'd say all three parties are to blame. If any one of those factors were missing, this likely would not have been fatal.

Tesla paid out because FSD abruptly steered him out of the lane and into the barrier.

We don't know if he played games. Some person declared that he did. There is a way to collect evidence from phones and it's not "let's find an apple engineer who will make a deposition." In fact, if he really played games Tesla would make sure that it can be submitted as evidence in this court so it's more likely he did not.

A great citation showing how Tesla does not actually care about safety. After all, Elon just turns off safety (elon mode) when he tests the car.