With the fall of the (northern) kingdom of Israel and the scattering of its population by the Assyrians in 722 BCE, when Judea became the sole sovereign Israelite entity.
As the Book of Exodus itself suggests, it was the probably the second:
(in Square Hebrew script: לא תעשה לך פסל וכל תמונה)
—i.e. ‘Thou shalt not make unto thee any graven image, or any likeness’
The Ibscha Relief from the tomb of Khnumhotep II shows Semitic traders as light-brown-skinned people with tailored beards and curly black hair—in contrast with Egyptians, with longer straight hair, and a darker complexion.