If I try to graph this function, it does not appear to reflect across the y-axis when it comes time to do the reflection. Rather, it is reflected around the point where the function begins on the graph.
Here is what I tried: $$\sqrt{2-x}=\sqrt{-(x-2)}$$ This makes it easier to graph the transformations:
Root function ($f(x)=\sqrt{x}$):

With the right horizontal shift ($f(x)=\sqrt{x-2}$):

With a horizontal reflection ($f(x)=\sqrt{-(x-2)}$):
This is the part I'm confused about. Why doesn't it reflect across the y-axis?

I would expect the final graph to look like this:

As you observed that $f(2-x) = f\big(-(x-2)\big)$. Since $$ f(x) \quad \stackrel{(1)}{\longrightarrow} \quad f(-x) \quad \stackrel{(2)}{\longrightarrow} \quad f\big(-(x-2)\big), $$ we can obtain $f(2-x)$ from $f(x)$ by transformations that correspond to (1) and (2), where
(1) is reflection across the $y$-axis;
(2) is translation to the right by $2$ units.