Abu Dawud

Benefits and Issues:
This narration is weak in its chain of transmission.
However, Imam Ibn Taymiyyah (rahimahullah) holds the view that it is permissible to offer a sacrifice (qurbani) on behalf of a deceased person, just as it is done for Hajj and charity (sadaqah).
Therefore, if someone offers a sacrifice on behalf of a deceased relative, it will be permissible.
His greatest evidence is that giving charity on behalf of the deceased is permissible.
So, sacrifice is also permissible, because it too is a form of charity.
For this reason, he also says that the sacrifice offered on behalf of the deceased,
all of its meat should be distributed.
One should not eat from it oneself.
(Tuhfat al-Ahwadhi) Other scholars say:
Since there is no clear evidence that the Prophet (sallallahu alayhi wa sallam) offered a sacrifice specifically on behalf of a deceased person,
even though during his lifetime, Khadijah (radi Allahu anha), his three daughters, his uncle Hamzah (radi Allahu anhu), and others had passed away,
but he did not specifically offer a sacrifice for any of them.
However, in his own sacrifice, he did say these words:
“O Allah! Accept this from Muhammad (sallallahu alayhi wa sallam), the family of Muhammad (sallallahu alayhi wa sallam), and the Ummah of Muhammad (sallallahu alayhi wa sallam).”
(Sahih Muslim, Book of Sacrifices, Hadith: 1967) In this, all the living and deceased members of the Ummah of Muhammad (sallallahu alayhi wa sallam) are included.
From this, it can be deduced
that in one’s own sacrifice, the person offering the sacrifice may include whomever he wishes,
even the deceased, but this cannot be used as evidence for offering a separate, individual sacrifice on behalf of each deceased person.
Therefore, the permissibility of offering a separate, independent sacrifice solely on behalf of the deceased is questionable.
Most likely, for this reason, Shaykh al-Albani (rahimahullah) has taken the position
that offering a sacrifice on behalf of the Ummah is among the special characteristics of the Prophet (sallallahu alayhi wa sallam),
in which it is not permissible for the Ummah to follow him.
See:
(Irwa’ al-Ghalil: 4/353) This is also supported by the fact
that in the era of the Salaf (the Companions and the Followers), there is no evidence of this practice (offering a sacrifice on behalf of the deceased).
And Allah knows best.