Can adjacent figures next the original target use ESD against the attack and do they also get a hindering bonus?

They can use ESD because they become a target. The +1 hindering does not apply because line of fire is not being drawn to them.

Just like maxphyte said, line of fire is not being drawn to the additional characters. This means that the attack also gets through stealth and any other effects dependent on line of fire. ESD still works because it is triggered when the character is targeted by a range attack.

That's what I thought, thank you both!