Is the hadith of Amr ibn Shu'ayb—"that the Messenger of Allah, may Allah's prayers and peace be upon him, taught my father and my grandfather a supplication to be recited before sleep that grants protection from fright and distress, so we used to teach this supplication to our older children, and as for the younger ones who could not read, we used to write it and hang it around their necks"—which was mentioned by Ibn Kathir and Al-Shawkani—considered evidence for the permissibility of hanging amulets?

The Hadith referred to by the questioner has a weak chain of narration (is ضعيف), especially the phrase: "Abdullah ibn Amr would teach it to his children who reached puberty, and for those who had not reached puberty, he would write it on a parchment and then hang it around their necks." Scholars have differed regarding the ruling on hanging amulets and talismans from the Qur’an or supplications, oscillating between prohibition and permissibility. However, prohibition is preferable as a means of blocking the path to forbidden beliefs, especially in our current time due to the widespread ignorance and innovations.