Exactly this. Also I wanted to point out, LIDAR absolutely sees the lines on the road. Of course, this is not much use if they’re faded, but LIDAR receives points from the road/ground, and since lane markings are white, they have a much higher reflectivity. So if you look at a LiDAR pointcloud, the lane markings have a higher point concentration and you can definitely see them.

Source: I work in this sector.