Clearly only you know the exact situation. In general terms unless it was a wide road I would stop in that situation. If a car really did have to brake then you shouldn’t have gone.
Also, if a car flashes you in that situation and you would have to do a sharp right (to miss the parked cars) and then sharp left (to miss the oncoming car) I would also wait for the car to get bored and go past, especially if there is a clear road behind him. The car thinks he’s helping you but he’s actually making it harder and more dangerous and the examiners know that.
On a different note - when you said your mind went blank during reverse, it reminded me of my second test where I did the worst reverse ever. My first ever attempt on day 1 of training the first time was better than what I did that day. That morning the instructor had me demonstrate to the new kid (his first day of training) how to follow the yellow line. So my test comes, and I’m happily following the yellow line and for some reason I forget to stop following it…so when it finally occurs to look in mirror I see a totally unfamiliar view for the first time. I was almost at 90 degrees to the garage! Had to go on full opposite lock and just got the near side rear wheel in, I was holding breath! It broke the ice though as I had a chuckle with the examiner about it.
Am sure you will be fine next time. Nice smooth drive crawling up to hazards and junctions. Nice slow gear changes, send the message to the examiner that you are calm and confident. Again, best of luck.