Taliban shadow chief justice Mawlawi Abdul Hakim's support for peace and talks with the Afghan government is the latest indication of the fractures within the Taliban leadership.
Security forces are searching for the remnants of a failed Taliban assault on the city last week.
The demonstrators declared their support for the arrests of three illegal militia commanders last month.
The two ISIS leaders allegedly were responsible for providing explosives, suicide vests and the transportation of ISIS family members throughout the province.
False claims by the Taliban that the militants had seized most of the government buildings in the city were an attempt at creating "strategically inconsequential headlines", said US Forces Afghanistan.
At a gathering of more than 1,000 Herat residents, the chairman of the local peace council informed participants that members of the Taliban and the council have recently met and discussed peace.
Taliban militants built a stone wall on the road a year ago, blocking access for cars in an effort to prevent government officials from commuting.
More than 1,000 religious scholars and tribal elders, as well as about 300 women, called on the Taliban to declare a lasting ceasefire for Eid ul Adha and hold talks with the Afghan government.
There are indications that various Taliban leaders are inclined to launch peace talks with the government, according to the High Peace Council.
Once inside the mosque, the two attackers opened fire on the crowd of worshipers before detonating their bombs.
The victims were from India, Macedonia and Malaysia and worked for France's Sodexo, according to Afghan officials.
ISIS fighters have surrendered to authorities before but this time is different: its regional leader and deputy surrendered with more than 150 fighters all at once.