Neither of your scenarios are the case here. The road segment still exists, even if basically no one uses it anymore. Older maps of this area showed that Brandywine Way was connected to Lorenzi Street via this highway segment. However, the former's western terminus was moved from the latter to a cul-de-sac (dead end), where it remains today.
As mentioned before, the statement "The street does not exist anymore" is false; therefore, any other statements dependant on this one are irrelevant. Carto doesn't render it (presumably because it's tagged with `disused:highway=*`), but if you go to this location on any map service that provides satellite imagery, you too will see that the road still exists.
Also, there's this expression used in OSM: "Any tags you like."