People learning electronics are taught that the diode conducts when the Anode is Positive with respect to the Cathode, but when they see a positive voltage on the Cathode as in this case, they are often confused. I always emphasised that the condition was WRT in other words With Respect To. Keep that in mind and it becomes clear. There is a voltage drop across the diode of 792 millivolt, so there is +11.2 Volt at the Cathode but 12 Volt on the Anode. Therefore, the Anode is positive With Respect To the Cathode, so the diode conducts.
