and this is not the familiar form of dhikr. This would indicate that it is disliked to enter the privy carrying anything that bears the name of Allah.
However, the hadith is defective and has been subject to much criticism (1). Those who deem the hadith authentic or sound hold that this is disliked, whereas those who hold that it is not authentic maintain that it is not disliked. Nevertheless, it is better not to enter carrying it.
There is a difference between saying that something is better and saying that it is disliked, for failing to do what is better does not necessarily entail falling into what is disliked.
Some scholars made an exception for a copy of the Quran, holding that it is forbidden to enter the privy carrying it, whether it is visible or concealed (2), because it contains the noblest of speech, and entering the privy with it is a form of disrespect.
Except in a case of need, …
His statement, “Except in a case of need”: this is an exception to the ruling of dislike. That is, if one needs to carry such an item—for example, banknotes bearing the name of Allah—then there is no harm in entering with them. For if we were to say, “Do not enter with them,” and he were to take them out and leave them by the entrance to the privy, they could be forgotten. If he were in an open place, they could be blown away by the wind; and if he were in a gathering of people, they could be stolen.
As for a copy of the Quran, they said that if one fears it may be stolen, there is no harm in entering with it (3). The apparent meaning of their words is that this applies even if he is wealthy and can obtain a replacement.
In any event, a person should make every effort, especially with regard to a copy of the Quran, not to enter carrying it. Even if he is among a public gathering of people, he should give it to someone to hold until he comes out.