Q: "A man is sitting on a sunny street in a lawn chair." Does this mean that "A human sitting"?
A: yes

Q: "A man is walking in an alley with neon signs on both sides with red and white lights overhead." Does this mean that "The man walked between buildings."?
A: yes

Q: "Two dogs are playing on a hardscape." Does this mean that "Two dogs are sleeping inside a house on a bed."?
A: no

Q: "A man in a black hat sits by a tree and plays guitar." Does this mean that "A man has a clean black hat."?
A:
it is not possible to tell