Abu Dawud

Benefits and Issues:
➊
This narration is weak, but according to some Imams it is authentic.
However, the part about "half the blood money" is not authentic.

➋
The literal translation of the last sentence of the hadith ("la tara'a nara-huma") could be:
That the fires of both of them, meaning the Muslims and the disbelievers, should not even be visible to each other.
Allamah Khattabi has written three explanations regarding this:
(a) The Muslim and the disbeliever are not equal,
and their ruling is not the same.
(b) Muslims should remain so distant from disbelievers that even if a fire is lit, it should not be visible.
From this meaning, it is deduced that in Dar al-Harb, due to some severe necessity, one should not stay for more than four days.
(c) That the people of language translate it as:
There should be no resemblance or similarity between the two (Muslim and polytheist).
This meaning is derived from the Arabic style of speech in which they say: (ma nar ba'irik) "What is the sign and condition of your camel?" (narha tijarha) "The brand on its high hump is a sign of its purity."

➌
When a person expresses his being a Muslim in any way, his blood and wealth become protected.

➍
It is not permissible for any Muslim to adopt permanent residence in the land of the disbelievers, especially in Dar al-Harb.

➎
It is obligatory that a Muslim remain distinct from the disbelievers not only in belief and action, but also in customs and culture, and should not adopt their resemblance or similarity.

Explanation:
1:
From this hadith, it is understood that when Muslims reside among disbelievers and are killed at the hands of the mujahideen, there is no sin upon the mujahideen for this.
And the meaning of "so that they do not see each other's fire" is that, according to the demands of the circumstances, it is necessary to migrate from the homes and areas of the polytheists, because Islam and disbelief cannot coexist.
The ruling of half the blood money (diyah) was given because the remaining half was forfeited as a punishment due to residing with the disbelievers.

Note:
(Based on corroborating narrations (mutaba‘at), this hadith is authentic (sahih); otherwise, its being mursal is more correct. See:
al-Irwa’:
No. 1207)

Takhrij:
«أخرجه أبوداود، الجهاد، باب النهي عن قتل من اعتصم بالسجود، حديث:2645، والترمذي، السير، حديث:1604، والنسائي، القسامة، حديث:4784 من حديث قيس بن أبي حازم مرسلًا.* أبو معاوية الضرير عنعن وله طرق ضعيفة كلها.»©Explanation:
➊ The aforementioned narration has been declared weak by our esteemed researcher, whereas some other scholars have considered it authentic. Shaykh al-Albani rahimahullah has discussed this in detail in Irwa’ al-Ghalil, from which the opinion favoring the authentication of the hadith appears to be closer to correctness.
And Allah knows best.
For further details, see: (Irwa’ al-Ghalil: 5/29, 33, No. 1207)

➋ From the aforementioned hadith, it is understood that when Muslims reside among the disbelievers and are killed at the hands of the mujahideen, there is no sin upon the mujahideen for this.
They will not be declared criminals for this action.

➌ When circumstances are tense, it is obligatory to migrate from the lands of the polytheists.

© Narrator of the Hadith:
«حضرت جریر بَجَلی رضی اللہ عنہ » His kunyah is Abu Amr.
His lineage is as follows: Jarir ibn Abdullah ibn Jabir al-Bajali.
In “Bajali,” both the “ba” and the “jim” have a fatha.
He entered the fold of Islam in the 10th year of Hijrah; the Prophet sallallahu alayhi wa sallam, upon his arrival, spread a cloth in his honor.
He was sent to demolish the idol Dhu’l-Khalasah, and he brought it down.
During the Prophet’s sallallahu alayhi wa sallam time, he was appointed as the governor over Yemen.
He said that since the day he accepted Islam, the Prophet sallallahu alayhi wa sallam never deprived him of his company and always looked at him with a smile.
The size of his sandal was equal to one hand-span.
He was present at the conquest of Mada’in.
And in the Battle of Qadisiyyah, he was assigned to the right flank of the army.
He was given the title “Yusuf of this Ummah.”
He passed away in 52 or 54 AH.