At other times, it enables and promotes peaceful coexistence. It all depends on who is interpreting whatever scriptures or holy writings that are the particular religion's foundation.
Just took at the different ways different denominations of Christianity look at, say, LGBTQ people. Depending on which church you're in, you can hear a message of acceptance or a diatribe of hatred and blame.
Religion, all too often, normalizes hatred and malice toward the "others." Defenders of particular religions generally point to peaceable denominations as examples, neglecting to mention all of the examples of the opposite kind. Defenders of religion in general tend to seek out messages of acceptance and tolerance, while ignoring messages of hatred and distrust.
Why is religion particularly to blame for promoting intolerance? Because when it does so, it justifies that intolerance by quoting scripture which is typically considered to be a deity's instructions to humans. That additional weight of authority makes people feel OK about hating the "others." "God said it was OK to hate them."
That is not to say that other human associations, societies, and cultures do not also promote intolerance. Projection is a common feature of many such groups.