Let's say that an American municipality instituted a rule that people who profess Muslim beliefs are to be excluded from gathering in public establishments. No one would be physically forced to abandon their faith, and they would have the completely free choice to remain Islamic and accept the consequences.
Correct. It's not coercion. The fact that it's wrong to discriminate against someone due to their religious faith and to violate peoples' right to free assembly is orthogonal to the question of whether it's coercive or not. In other words, this is a false equivalence.
Would you not perceive any coercion here?