They can be blinded by the sun too.

I worked as a reaserch engineer at a uni playing with a 16 beam Velodyne when those were fancy.

Put it on a car for a demo day, drawing the dots in 3d and marking obstacles red, and during sun set there was artifacts with no obvious way to filter out.

Strangely, I was never able to recreate this. I think was some specific athmospheric condition.