He clearly stays 2nd for the whole time as you can see on the leaderboard.
(To be clear, I dont defend Zoky personaly, I would say this for any driver in this situation)
I do not know or defend either driver from a personal standpoint.
But if you look at the video and pause or freeze frame it at .40 seconds then you can clearly see the nose of the car to the inside or left side.
You can clearly see the red indicator on the hud that shows a car to the inside or left side and this is before we are at the point of the apex of what would be considered the second left hand corner at that point on the Track.
Also the view that is being used is the front bumper cam as it has the rearview mirror as part as the view.
With that camera angle you would not be able to pick up the nose of the inside car unless it was basically clear of the car with the bumper cam viewpoint.
Even if the inside cars nose was only up to the front tire area of the outside car that would still be plenty ample to determine position and entitlement to that lane of the track he is occupying but it is clear that he is further forward than that.
As far as the leader board not showing a change that is not a requirement to own the position or lane on the track.
From a racing standpoint it was not required for the inside car to be ahead of the outside car at that position on the track only abreast of the outside car which the view fully shows he was.
You have to remember although as a racing line it may be desirable to treat the corners as one and connect them as such for the most efficient line you are actually dealing with two separate corners with each corner being singular having its own apex and the rules of position will apply as separate corners.
If you watch as the cars enter the first corner the outside car had to remain in the outer lane as the leader of the race owned the inside line going into corner one.
The outside car was not protective and left the door open on the inside lane through turn one as he was setting up for the second corner and Matty took advantage of such oversight and filled the inside lane prior to the cars reaching that second corner.
In my opinion Matty met the criteria to be far forward enough to the car he was beside prior to entering that second corner to be entitled to the racing line he was occupying.
If a penalty was to be handed out in that incident the game got it correct by penalizing the outside car in that incident.
We all have opinions on what the rules of overtaking but if I was in a position as race steward over this incident with the evidence as presented this is the way I would rule.