I am shocked that this isn't unanimous.
Right side of the 7, play the cue ball two rails to the opposite end rail.
I am NOT worried about using the 7 to block the path of the 8 ball, nor whether it ends up as a good break ball should I get ball in hand.
I am NOT at all worried about 'what to do with ball in hand'.
I WOULD like to leave the 7 close to the corner pocket so it gives me more play should I get ball in hand or my opponent makes a legal kick/bunt.
I am very, very confident I can win with ball in hand. I could take BIH and put the cue ball right next to the five on the 8 ball side of it, then thin the 5 and go up table again, breaking it out, and leaving no hit on the 13, or no bank as the 5 blocks either the 13 or the bank. Or I could shoot a stop shot on the 5 leaving him dead frozen on the 13 (on top of it but without the ability to get to the side rail for a kick safe) with my balls hanging on different pockets. Or I could move the 7 ball somewhere else and dead hook him again to set up something better.
Bottom line, if you run this 100 times I am very, very confident I can win this game a good 95%+ of the time, even against Efren Reyes.
Anyone choosing to leave him close to the 13 where he can see the ball or putting your eggs in the basket of trying to get behind the 8 is taking a huge risk. If you leave me close I can maybe shoot a one pocket soft kick into the 13 and may hook you, or limit your options. And if you miss the hook on the 8 you lose.
The worst option in my opinion is risking moving the 5 ball now. I can assure you that you won't like it as much of the time. There is a built in margin of error in execution, and you open the doors to leaving a clear shot, and easy return safe, or a routine bank/kick.
I wish we were all in the same pool room so we could set this up and play it out different ways. I'll take creating 9 feet of distance (or 7 feet, are we on a bar box, that does make a difference although not in this case, it's so clear cut!) and run it all day long.