Overall meaning:
Umm Ḥabībah bint Jahsh was afflicted with istihāḍah for seven years. She asked the Prophet ﷺ how she could attain ritual purity from it, so he instructed her to perform a ritual bath, and she therefore used to bathe for every prayer.

Scholarly disagreement
The jurists have differed over whether a woman in istihāḍah must bathe before each prayer. Some held that it is obligatory, relying on a number of reports found in certain Sunan collections.

The majority of the early Muslims—including ʿAlī, Ibn ʿAbbās, and ʿĀʾishah—and the later generations, among them the imams Abū Ḥanīfah, Mālik, and Aḥmad, maintained that it is not obligatory. They argued from the principle of original exemption: nothing is mandated unless proven otherwise. They further responded that none of the reports commanding a bath for every prayer is authentically established.

Thus Umm Ḥabībah’s bathing for each prayer was her own choice; the Prophet ﷺ did not order her to do so every time. He merely instructed her to bathe once, as the sound narrations state. Ibn Daqīq al-ʿĪd noted that neither Ṣaḥīḥ al-Bukhārī nor Ṣaḥīḥ Muslim contains any report that he commanded her to bathe for every prayer.

Points derived from the hadith
It is obligatory for a woman suffering from istihāḍah to perform a ritual bath once the days of her usual menstrual period have ended.

Ruling on physical intimacy with a menstruating woman
First hadith
ʿĀʾishah (may Allah be pleased with her) reported: “The Messenger of Allah ﷺ and I used to bathe from a single vessel while we were both in a state of major ritual impurity. He would instruct me to wrap myself with a waist-cloth, and then he would fondle me while I was menstruating. (1) He would also extend his head toward me while he was in iʿtikāf, and I would wash it even though I was menstruating.”

Overall meaning: This narration covers three points: