A much, much more natural way to put it is ‘you don’t look alike’.
Couldn't this be referring to some other type of similarity, rather than appearance?
'You're not alike' is more natural in English than 'You are not similar' or even 'You are not similar to each other', which Duolingo accepted. 'You are alike' should be accepted, if it isn't already (I haven't tried giving it as an answer).
Agreed. "You are not alike" or "You are not similar to each other" are the proper English reanslations. Hebrew here is like Spanish, it has the verb "to be similar", but English doesn't.
Atem lo domim.
Could you say "you're not the same"?
"The same" is a much stronger comparison than "similar", so it would not be equivalent.
Similar and alike are alike.