As I have said previously, the wiki documents bicycle=dismount as meaning that no cycling is allowed, but you are allowed to push your bike. See https://wiki.openstreetmap.org/wiki/Tag:bicycle%3Ddismount

So bicycle=dismount is legally correct here, and more appropriate than bicycle=no because of the “cyclists dismount“ signs. IMO these are an acknowledgement from the council that cycling is not legal for a short stretch here, but that people will want to do it because there are cycle paths at both ends of the dismount stretch.