I love you cherry picking nuanced images you know nothing about without proper context. Let me provide it since I'm sure you forgot.
As with everything that has to do with the West Bank, nothing is what it seems on the surface, and everything is complicated, tense, and intense. I like to joke that it's not the West Bank, it's the Wild West. The West Bank is decided as agreed upon in the Oslo Accords into three areas. Area A is assigned to the Palestinians and is governed by the Palestinian Authority, Area B is for both Israelis and Palestinians, and Area C is for Israelis alone and is governed by Israel. At the entrance to any Area A section is a sign that looks like this:
Looks familiar? Now doesn't that scream apartheid? In truth, it isn't. Not only Israelis are forbidden to enter by law, do you see the part where it says that the entrance for Israeli citizens is endangering their lives? That is there for a reason. Look up the Ramallah Lynching of 2000 (and use a RELIABLE source). That's what happens when Israelis enter Area A by accident. It is THAT dangerous. (Fun fact! The photo that would show up of Aziz Salha is the base for that oh so popular red hand pin. Actually that's a not so fun fact, because you virtue signaling good hearts are using a pin that idolizes the symbol of Israeli blood on Palestinian hands. Not so peaceful.)
Now let's look at the photo you shared. This sign was placed at the entrance to Yitzhar, an Israeli village on Area C, a bit south of Nablus, which is in Area A. The locals of this village are religious Jews, and it is unfortunately located in a VERY tense area of the West Bank. A lot of terror attack took place around there both by Palestinians and Jews. Here is a good example (out of a very long list of shootings, stabbings lootings and fire settings).
September 13th 2008. A 17yo Palestinian lit a family house in Yitzhar on fire, where young children lived, as well as stabbed a 9yo several times.
The next morning, a group from Yitzhar went to seek revenge in the Palestinian village of the 17yo. They destroyed property, and attacked and wounded a few Palestinian locals. The Israeli PM at the time, Ehud Olmart, condemned that reaction strongly.
That cycle of attacks and vengeance seems like it is neverending and runs very deep. That people at Yitzhar have a deep distrust of Palestinians and Arabs, as well as the security forces that enforce the area. Now, my personal opinion is that vengeance only adds fuel to an already scorching fire, and I expect Jews who are so close to the religion to act way more peacefully, but this is the Wild West, and I can honestly cannot speak for the people of Yitzhar, who suffered as much violence as they delivered.
On to the sign in the photo. During covid, in 2020, a health industry covid test administer seeked to enter the settlement and deliver the tests, and the people of Yitzhar blocked his entrance, per their illegal but unenforced "no entrance for Arabs" policy (he was an Arab Israeli citizen). IDF officials instructed the locals to change of the illegal policy and allow entrance for the covid checker.
In protest, the locals put up that sign in the entry road to the settlement. It is NOT an official Israeli policy, and it is NOT a legal policy. It is a protest.
Is it right? In my opinion, no. It is illegal. Do I understand the frustration of the people? Also no. It is nuanced and incredibly complex. Now, full picture, what are your thoughts?