Likewise, the adulterer, the thief, the drinker of intoxicants, and the looter have not lost the faith by virtue of which they are entitled not to remain eternally in the Fire, for which intercession and forgiveness may be hoped for them, and by virtue of which they retain the rights of marriage and mutual inheritance. But they lack the faith that entitles them to deliverance from punishment, the expiation of sins, the acceptance of acts of obedience, and Allah’s honour and reward—the faith by virtue of which they deserve praise and approval.

This makes clear that the hadith is to be understood according to its apparent meaning, in a manner befitting it. And Allah knows best.