Tested with LyX 2.1.3 (so with my own file, not the attachment) and got the expected result. "Visual" cursor movement means left and right arrow keys always move the cursor left and right. The "logical" behaviour is as follows:
1. If the document is LtR and there is text is RtL then "right arrow" means "move forward", "left" means "move back", and the cursor moves in the arrow direction if in English text, but in the opposite way if in Hebrew text. 2. If the document is RtL and some text is LtR then "left" moves forward, and "right" moves back, so the cursor moves in the arrow direction in Hebrew text, but against arrow direction in English text. Lior