What is the authenticity of the hadith: "A thief was brought to the Messenger of Allah, peace and blessings be upon him; so his hand was cut off, then he commanded it, and it was hung around his neck"?

The aforementioned Hadith has a weak chain of narration (Isnad) because it contains "Mak'hul al-Shami" and "Al-Hajjaj ibn Artat," both of whom are mudallis (narrators who ambiguously describe their sources). It was deemed weak by Al-Nasa'i and Al-Albani.

However, the act of hanging the severed hand is authentically reported to have been done by Ali ibn Abi Talib, may Allah be pleased with him. The Shafi'is and Hanbalis have gone to the extent of deeming it desirable to hang the severed hand of a thief around his neck as a deterrent to people. In contrast, the Hanafis believe that the matter is left to the Imam if he sees a benefit in it. As for the Malikis, they did not mention anything about it.