Are we supposed to fight everyone and kill those who disbelieve?

It is narrated in Ibn Ishaq 992: >“fight everyone in the way of allah and kill those who disbelieve in allah“ I know Ibn Ishaq is generally a weak source, however I'd like to know just how weak this is. Does it reach the level of fabrication for example? Likewise, what is the context of the situation? If this is a general narration applicable for everyone, does it not contradict the fact we are only supposed to kill non-combatants and ask for Jizya beforehand?