How to get SQL insert and/or update to not lock entire table on MS SQL Server
Chances are it isn't locking the "whole table".

It is locking a row in the table but your SELECT * FROM LAYOUTSv2 tries to read the whole table so necessarily is blocked by that lock.

For the insert case you can merely specify the READPAST hint to skip past the locked row- however that will not give your desired result for the UPDATE case (it will skip the row again not read the starting version of the row).

If you configure the database for read committed snapshot isolation this will give your desired effect for both cases (at the expense of greater use of tempdb)