Let's break this down to its parts.
HOLD WEST OF THE ONE FIVE DME FIX
Yes, this is why the depicted holds are west of the fix, not west of the VOR.
ON THE ZERO NINE ZERO RADIAL OF ABC VORTAC
This gives us the holding course. Don't get confused by radials/inbound/outbound terminology. Because the hold is west of the fix, the inbound course to the fix is 090.
FIVE MILE LEGS, LEFT TURNS…"
This is a nonstandard pattern.
You arrive at the 15 DME fix on a heading of 350°.
This implies one of two things. Either the 15 DME fix coincides with a 2nd VOR radial that was assigned as a course to the intersection, or an RNAV direct course to the fix was assigned.
Which holding pattern correctly complies with these instructions?
Because of the nonstandard left turns, pattern #1 is correct.
What is the recommended entry procedure?
Direct entry is recommended. This can be the most confusing part. Arriving from the "right" side of the "left" holding pattern on a heading more than 70 degrees from the outbound course (80 degrees in this case), it should be a direct entry.
Using what I call the "pen trick", hold a pen vertically over the heading indicator, rotate it 70 degrees to the left (for a left hold) and then check the sector of the outbound course 270. This course falls below the pen, which is the direct entry sector.
Is this a real situation?
Yes. Think of it as a 270 radial from the holding fix. In this case, the holding fix is not a VOR.