The West Bank is administered by the Israeli Civil Administration which is a branch of the Israeli Ministry of Defense. Even the Israeli High Court of Justice (Supreme Court) says that "Israel holds the Area in belligerent occupation" and that "a military administration... continues to apply". [0]
Not to mention how the Israeli government allows over 700,000 illegal settlers to flood the West Bank and does absolutely nothing to stop them from stealing land or attacking Palestinians. The Israeli military has ultimate authority there. Like the other commenter said, it's a fantasy to claim otherwise.
Israel does have a military presence in the West Bank due to the monthly terrorist attacks on Jewish citizens in the West Bank and Israel, currently at 57 attacks per month this year.
As for settlers, I ask readers to observe the double standard: Jews who live in Palestinian areas are "illegal settlers" and "stealing land", but Arabs who live in Israel are entitled to free education, healthcare, citizenship, voting rights, and representation in the government.
By "Arabs who live in Israel" you mean the minority of Arabs who the Israelis didn't force out at gunpoint during Plan Dalet and the Nakba. The Israelis can rectify the situation at any time by either allowing the Palestinians in the West Bank and Gaza to have a real state, not a puppet or rump state, or by incorporating them into Israel with full legal rights, political representation, and an end to military occupation.
Ah, the "Nakba", the catastrophe: the 1948 war where Syria, Lebanon, Transjordan, Yemen, Saudi Arabia, Egypt, and the Islamic Holy War Army invaded Israel, despite being legally partitioned by the United Nations.
Yes, what a catastrophe that invasion was for Arab nations and Arab population in the land.
Perhaps if those nations had not invaded Israel, and perhaps if local Arab communities had not committed violence and massacres of local Jewish communities leading up to Jewish independence in 1948, things could have turned out better for them.
And maybe things can be different tomorrow, too, if Palestinians turn away from terrorism and seeking the destruction of the world's only Jewish homeland.
Not to mention how the Israeli government allows over 700,000 illegal settlers to flood the West Bank and does absolutely nothing to stop them from stealing land or attacking Palestinians. The Israeli military has ultimate authority there. Like the other commenter said, it's a fantasy to claim otherwise.
[0] https://books.google.com/books?id=B1ZIIDeEc5AC&pg=PA511#v=on...