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You may need to be more specific. Lugnuts are what screw into the lug holes of a wheel in order to keep the wheel on the discs of each axle on a vehicle. So lugs prohibited may mean vehicles with no wheels.
Lugs are like cleats, chains or studs: they can be attached to tires for added traction. They can chew up roads so prohibiting them on certain streets and posting the ban near places where they are used is done. El Cajon, CA, has it written into their municipal code.
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