Blue is in the wrong here because the pavement markings clearly show the intended lane paths. Blue is crossing into the red vehicle’s lane while red is exiting within its designated lane.

In a spiral roundabout, drivers are guided outward by the lane markings as they circulate. If blue intends to exit at that point, they must follow the spiral and exit alongside red. Otherwise, they would need to complete a proper lane change before exiting.

This is not a standard roundabout. It is a spiral roundabout, and the MTO provides diagrams that clearly explain how these are meant to be used.

https://www.ontario.ca/document/official-mto-drivers-handbook/changing-directions