It is decidable, and this is a sketch for an alternate proof (I leave out MANY details).
You can consider $\bar{ L } = \{ \langle M, w \rangle \mid$ $M$ moves left at most 2 times on $ w \}$, and prove that $\bar{L}$ is decidable.
To show that it is decidable, note that $M$ while scanning $w$ cannot go back and cross more than 2 symbols.
So while scanning symbol $a_i$ at position $i$ of $w$ in state $q_i$:
- $M$ does more than 2 steps towards the left OR
- $M$ after at most 5 steps moves right into position $i+1$ and enters a state that only depends on $a_i,a_{i-1},a_{i-2}$
So you can build a DFA $D$ that is equivalent to $M$:
- the state of $M$, the content of the previous 2 cells $a_{i-1}, a_{i-2}$ are stored using internal states: in other words, the state of $D$ is identified by a triple:
$\langle q_i, a_{i-1}, a_{i-2}\rangle \;$ ($q_i$ is a state of $M$)
- the transition table of $D$ is built in this way:
if the current symbol is $a_i$, and the state is $\langle q_i, a_{i-1}, a_{i-2} \rangle$ then simulate $M$ on string
$a_{i-2} a_{i-1} [a_i]$ with head position $i$ and state $q_i$
for at most 5 steps.
If $M$ moves left more than twice enter a special state of $D$ called $q_R$, otherwise if $M$ moves right to position $i+1$, writing symbols $a_{i-1}', a_{i}'$ at positions $i-1,i$, and enters state $q_j$, then the transition of $D$ will be:
$\delta(\langle q_i, a_{i-1}, a_{i-2} \rangle, a_i) \to \langle q_j, a_{i-1}', a_{i}' \rangle$
For the special state $q_R$ (which is the only non-acceptance state) simply set:
$\delta( q_R, a ) \to q_R$
If for a pair $\langle q_i, a_{i-1}, a_{i-2} \rangle, a_i$ you find that $M$ halts, then the DFA can enter a special (accepting) state $q_A$ in which $D$ ignores the rest of the input.
Finally you should also consider what happens at the end of $w$, i.e. consider the blank symbol $b$ as a tape symbol for $D$.
In this way you prove that $M$ on $w$ move left more than twice if and only if the DFA $D$ rejects the string $w \; b^k$ (where $k$ is greater than the number of states of $D$) and thus is decidable.