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For the car traffic, activating the bus lane can help but some traffic might still end up in the tram lane. It's my understanding that no mod prevents this 100%. Different mods try different combinations of appearance, bus lanes, tram lanes, AI building control, player ownership, etc to make it better, so you might need to experiment to see which works best in your case.
Some examples I've seen:
https://steamhost.cn/steamcommunity_com/sharedfiles/filedetails/?id=2021038808
https://steamhost.cn/steamcommunity_com/sharedfiles/filedetails/?id=1933747406
https://steamhost.cn/steamcommunity_com/sharedfiles/filedetails/?id=2973238323
As far as I know the last 2 are the closest we have to car-free tramways.
Alternatively you can use a mod that converts trams to rail vehicles and use them on rail tracks, and then place rail tracks next to roads, or on top of roads, using mods like Build With Collision, etc. If you place them on top of roads tho, trams and cars will still drive thru each other.
There are a number of tram-only roads but vehicular traffic will still use it if there is not a reasonably fast route nearby.
For light rail systems with few to no street running segments, you could try using rail tracks combined with the Build With Collision mod, and smaller train consists instead, as per the suggestion above.