The thing is. If musk didnt insist on using vision only systems and used lidar or radar like evey other driving assist system… that person would have been seen by the system.

Are you sure about that?

The CHP said it reviewed dashcam footage of the crash showing the Tesla traveling around 70 miles per hour when the pedestrian walked onto the freeway from the right shoulder.

It also showed the “Tesla’s brakes being applied as the vehicle steered to the left in an effort to avoid the pedestrian,” it said in a statement on social media, as quoted by ABC 7. “Despite these evasive actions, the right front portion of the Tesla struck the individual.”

That certainly seems to me that the person was noticed and action was taken to avoid them. LIDAR isn't going to make a difference for a person on the side of the road suddenly entering the roadway in front of the vehicle. Waymo vehicles use LIDAR, and a man was hit in Dallas by one just a couple months ago, despite the Waymo system both seeing them and slowing down.

Waymo has indicated that their vehicle was moving at 24mph and detected the pedestrian had entered the roadway on the other side, when it was about 150 feet away, and anticipated he might attempt to cross the street into the Waymo’s lane. It immediately slowed in anticipation of that crossing. According to security camera video, the man and a companion had just left a store, and the victim stepped into the street, and was struck from behind shortly after.

That person wasn't even directly next to the Waymo entering the highway lanes like with this Tesla, it saw them when they were on the opposite side of the roadway and yet it still struck them.

LIDAR is not a magical solution to not hit people stepping into traffic to cross a road nowhere near a crosswalk.

Not if they walked into a highway.