I hope that's just a temporary "feature" for the duration of the tramway construction works, while the road is reduced to only one lane in total, and not something permanent, but it's certainly far from desirable from the perspective of people walking. At the very least it needs some sort of additional signs to encourage considerate and slow cycling, and to respect pedestrian priority. (It probably also doesn't bode well for the standard of what we'll get once the longer duration Leith Walk construction works are underway?)
We probably need to keep a longer term watching eye here, as the road width here will be permanently narrowed as the tramway will take up around 1 lane (possibly slightly more) of the current width, and all the plans only seem to show vague "cycling arrangements to be finalised" sketchery, which very much suggests a high likelihood of bikes being squeezed out of the final roadspace layout here, Haymarket-stylee...