My logic. Car 2 going straight, easy. Car 3 should "claim the intersection", ie. be in position to turn after 2 clears, leaving no doubt for car 1 who moves next. The issue comes when 3 for whatever reason doesn't move into position, claim the intersection and leaves car 1 in doubt.
But what I learned in Drivers Ed decades ago always goes through my head with questions of right of way. Right of way is something you never have but can always yield for safety.