Suppose Meursault thought his life would be better without his mother. She lives with him and nags. In other words, Meursault, mired in domestic misery, is thinking about an alternative life, in which his mother does not live with him. A present tense narration of this situation may go:
(A) Meursault pense que sa vie serait mieux sans sa mère.
Question: Which of the following is correct as past tense narration of the same situation (namely, that Meusault was thinking thus yesterday).
(A0') Meursault pensait que sa vie serait mieux sans sa mère.
(A1') Meursault pensait que sa vie aurait été mieux sans sa mère.
Please note Meursault is thinking about his then-current life, not past.
I would like an answer to tell us
For each alternative, that it does or does not to express the meaning intended.
If they both do, when a speaker would choose to use the one rather than the other.
If either one is strictly speaking not acceptable as an expression of the meaning intended, but some speakers may nevertheless use it, why that may be so.
(Some of you may know that this is, substantively, the same question that was part of some older posts. Those posts came under criticism for being too long and not drawing discussion. Thank you for letting me try again this way.)