There were several parts:
1. phone screening
2. technical interview by phone with a technical guy
I was referred by a recruiter.
I specifically mentioned a certain issue and asked to make sure I would only be referred to companies who do not think that issue is a problem.
During the phone screening I asked the company HR again if that certain issue would be a barrier to proceed. I wanted to make sure they are ok with it, otherwise there would be no point to waste time on a hopeless process.
They said it was not an issue at all.
Later I had the technical interview which I did good.
I was told I answered the questions well but was disqualified. The reason? basically the issue they previously said was not a problem.
So they apparently wasted my time. I don't know if they were not honest originally, or simply changed their mind later.
There is another option to consider: interviewers in Israel are notorious for dishonesty in comparison with Western countries so one cannot put much faith in anything being told by them, as they are known to have no problem to discriminate candidates and then make up whatever reason they believe is valid.
It would be very easy to disqualify based on some discriminatory factor and then come up with a known issue which could be problematic in order to disguise the action.
Whichever option is correct , they all display unprofessional conduct, disrespecting candidates time, acting not in good faith and possibly even dishonest and unethical behavior.