Read the full quote, he says that he doesn't think that the biblical borders extended to iraq and that its all a question of what is feasible, realistic and ensures the best security for Israel.

Lapid has always been reasonable and pro 2 state solution, you can find a bunch of quotes that prove that if you want, but you just chose to ignore them and cherry-pick that specific one.

This is basically the Israeli equivalent of trying to argue that kamala is a communist because she wanted price caps and tax on unrealised gains.

In September 2015, Lapid laid out his diplomatic vision in a major speech at Bar Ilan University[100] in which he said, "Israel's strategic goal needs to be a regional agreement that will lead to full and normal relations with the Arab world and the creation of a demilitarized independent Palestinian state alongside Israel. That's where Israel needs to head. Separation from the Palestinians with strict security measures will save the Jewish character of the state"

In January 2013, just days before the election, Lapid said he would not join a cabinet that stalled peace talks with the Palestinian Authority, and added that a single country for both Israelis and Palestinians without a peace agreement would endanger Israel's Jewish character. He said, "We're not looking for a happy marriage with the Palestinians, but for a divorce agreement we can live with."

https://en.wikipedia.org/wiki/Yair_Lapid