Let’s be super clear, [2] does not ban the user for being Jewish as per [1] claims.

There is no way for the mod/bot to know this rather. It is clearly spelt out in the terms.

“You have been banned for participating in a bad-faith subreddit (specifically Israel) which brigades other subreddits and spreads propaganda/disinformation/racism/sexism.”

Personally I don’t use Reddit that much, so I can speak to if this statement is true or not, the mods however do think it is.