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They're building it right in front of those other people's windows. Fuck these people.
The people in the old house had windows that had a bonus view for a while. Now the property's being developed and their bonus view just becomes a wall. If they wanted to maintain line of sight they should have purchased this property next to theirs.
It'd be a crazy world where you can't build on your property because you would block the window of somebody else's property
It looks like it's being built in front of their house, not next to it, but I guess this is a corner lot? If it's next to it then that's normal.
Do local govts/authorities not block people from blocking others' windows?
Around here you have to be a certain distance away from other windows, have your roof at a particular angle to make sure sunlight still reaches and a bunch of other stuff prior to approval... and even then neighbors are still free to block construction if it's impacting their light