Does the Hadith: "There is no prayer for the one who lets his garment drag" refer to the one who lets his garment drag during prayer or in general life?

The Hadith from Abu Hurairah, narrated by Abu Dawud and deemed weak by Al-Albani, states that Allah does not accept the prayer of a man who lets his garment hang below his ankles (musbil izarah). Scholars have differed regarding the validity of the prayer of one who lets his garment hang below the ankles. Some are of the view that it is valid because he has covered his 'awrah (private parts), while others do not consider it valid because he has covered his 'awrah with a forbidden garment.