President of Croatia (2015-2020) Kolinda Grabar-Kitarovic visited Bleiburg, Austria in 2019, for the annual commemoration of the Ustashe, the soldiers and civilians from the pro-Nazi Independent State of Croatia, that were killed by Yugoslav partisans in the aftermath of WWII.
Rudolf Edlinger, president of the Documentation Centre of Austrian Resistance, described it as “the biggest annual neo-fascist reunion in Europe." He said that the event glorified the Croatian Nazi-collaborationist regime.
In the same year, and on her third visit to Israel as President, Grabar-Kitarovic described her country as being “a strong and supportive ally of Israel”. For his part, Israeli PM, Benjamin Netanyahu declared that "Croatia has supported Israel and will continue to do so in the future." They then signed trade and security (military) agreements.
Grabar-Kitarovic's visits followed those of far-right Hungarian Prime Minister, Victor Orbán, who called Hungary’s Nazi World War II leader Miklós Horthy an "exceptional statesman". Netanyahu greeted him as “a true friend of Israel”.
So this road sign (the Croatian and Israeli flags) does not surprise me, nor do the war crimes presently being committed by Israel.