I don't know if the picture will show so I will describe. I don't know if my 2019 Wildwood has a bypass valve on the hot water heater. There are two valves. One on the cold line and one on...
It appears from pic that your two valve system will stop flow to heater by placing the levers to line with blue center hose. Set the way they are now would allow flow to in/out of WH. In my experience the valves turn hard from not using, but once broke loose, will turn quite easily.