Esau atoning for sins

Something interesting I found in rabbinical literature, that likely Islam borrowed from rabbis. It suggests substitutionary atonement. This passage from midrash says Esau will take on the sins of Israel! The logic is a bit absurd but this is not uncommon, you see similar used to support the righteous dead atoning for sin. Interesting how rabbis speak of the righteous atoning for others sins by their death, and here you see the wicked making atonement for the sins of the more righteous! Yet they some how find the atonement of Christ as wicked, impossible, and unjust! This from Yalkut which is commonly cited in rabbinical commentaries.

– נוֹטֵל הַקָּדוֹשׁ בָּרוּךְ הוּא כָּל עֲוֹנוֹתֵיהֶם שֶׁל יִשְׂרָאֵל וְנוֹתְנָן עַל עֵשָׂו הָרָשָׁע, שֶׁנֶּאֱמַר: "וְנָשָׂא הַשָּׂעִיר עָלָיו" – וְאֵין שָׂעִיר אֶלָּא עֵשָׂו, שֶׁנֶּאֱמַר: "הֵן עֵשָׂו אָחִי אִישׁ שָׂעִר". "אֶת כָּל עֲוֹנֹתָם" – אָמַר עֵשָׂו: כַּמָּה כֹּחַ יֵשׁ לִי שֶׁאַתָּה נוֹתֵן עָלַי כָּל עֲוֹנוֹת יַעֲקֹב אָחִי. בְּאוֹתָהּ שָׁעָה נוֹטֵל הַקָּדוֹשׁ בָּרוּךְ הוּא עֲוֹנוֹתָם וְנוֹתְנוֹ עַל בְּגָדָיו וְנַעֲשׂוּ אֲדֻמִּים, שֶׁנֶּאֱמַר: "מַדּוּעַ אָדֹם לִלְבוּשֶׁךָ", יָשַׁב וּמְכַבְּסָן עַד שֶׁנַּעֲשׂוּ לְבָנִים שֶׁנֶּאֱמַר: "לְבוּשֵׁהּ כִּתְלַג חִוָּר". "אֶל אֶרֶץ גְּזֵרָה" – (כָּתוּב בְּרֶמֶז קט"ו). 

AI translation:

“And the goat shall bear upon itself”—the Holy One, blessed be He, takes all the iniquities of Israel and places them upon Esau the wicked, as it is said: “And the goat shall bear upon itself”—and the goat is none other than Esau, as it is said: “Behold, my brother Esau is a hairy man” (Genesis 27:11). “All their iniquities”—Esau said: How much strength do I have that You place all the iniquities of my brother Jacob upon me? At that moment, the Holy One, blessed be He, takes their iniquities and places them on his garments, and they become red, as it is said: “Why is Your apparel red?” (Isaiah 63:2). He sat and washed them until they became white, as it is said: “His garment was as white as snow” (Daniel 7:9). “To a barren land”—(written in Remez 115).--Yalkut, Remez 576