The rule is based on course (track over ground), not heading.

Compass says 355*

Variation of 7* W means actual mag heading is 002*

Port = Left. So the 5* drift to port means you have a wind from the right (East) which is pushing the airplane left (West) by 5*.

So Magnetic Heading of 002* minus left drift of 5* = 357* track over ground which is a (barely) westerly course. So even altitude (+500 for VFR) applies.