That picture looks like light gauge joists and walls. on the right looks like the wall buckled out..maybe not tied back correct to the deck, or without concrete, no tieback
I am guessing that the forensic engineer that gets the city side should have no problem running a buckling analysis on columns with twice the designed unbraced length. Its the contractor's forensic engineer that will need to be creative.
As for lateral bracing of the columns at the second floor, I would consider 16 or 18 gage metal deck with the supporting beam structure to function as a viable diaphagm, and, as such, providing lateral support, if properly welded off per the plans....
I doubt that whether the third or second floor is placed first makes much difference in this case, since they were placing concrete on both floors on the same day. I have never worked a project where we allowed this practice. The steel and light gauge would have to have been designed to take two floors of wet concrete as a live load, which is not something I would design unless that sequence was part of the project up front.