Cheers friend
I ran out of character count so I couldn’t go into more detail on my initial post, but I think something like your interpretation (that you call #4) might be consistent with the overall category of #2 (
‘Nonliteral Commands, Literal History’).
Trent actually addresses your concern as well, about how such an interpretive approach, that raises the issue of Israel ‘misunderstanding’ God, may be perceived to call into question the inerrancy of Scripture.
Simplest response being, and I’m sure this has been stated different ways by different authors, but I’ll just go ahead and share an excerpt from the book already mentioned (Trent, please forgive me if direct quotes are any kind of copyright issue! I’m not sure what the standards are there):
“… After all, how can we trust Scripture if some parts represent that God’s people did not receive his message correctly? To this charge Ramage said that parts of Scripture that exhibit mistaken human worldview should not be seen as truths a writer was asserting but as details that expressed parts of the sacred author’s worldview. This would be similar to the physical details asserted about the Creation or the firmament (such as the latter being a solid, domelike structure in the sky) that we discussed in chapter 2… [This] offers one avenue by which to explain that scripture does not contain error in the sense that Catholic magisterial teaching understands it.”
Trent (quoting Ramage) refers to such an example as an “environmental glitch”, and personally I think this is a helpful way of approaching Scripture (within magisterial bounds, of course). Each specific example from Scripture may require a slightly different analysis based on the context. Environmental glitches in the communication of a reality don’t negate that a reality was unfolding between God and the Israelites. It was just a reality that the Israelites struggled (as we all do) to understand, and we need to keep that fact in mind as we delve into these texts. (Without just adopting an “I can interpret every part of Scripture any way I like!” approach.)
PS, may God bless you and your atheist friend who is currently attacking Christianity on the basis of perceived challenges in Scripture.

Truly, if you anticipate more of these conversations with your friend (or others), I’ll just recommend again Trent’s book: “Hard Sayings - A Catholic Approach to Answering Bible Difficulties”. It’s very readable (almost more like an introduction to each topic, but enough to at least sketch out answers that most people will find adequate), and covers
so many challenges that people experience reading the Bible: from seeming scientific inaccuracies, to seeming contradictions, to seeming moral difficulties like texts about women, slavery, or genocide… I can’t see any Catholic regretting having this one on the shelf, haha.
PPS I swear I’m not Trent Horn, or his publisher, or benefitting in any way from the sales of his book (except maybe by the world becoming more educated, which I think is lovely for everyone

). I just think it’s so useful, I’d love everyone to have it.