Feeling Shaken by This Hadith-Are We Headed for Torment?

Assalamu alaikum, I came across a hadith that really unsettled me, and I’m struggling to understand its wisdom. The Prophet ﷺ said that a time will come when nations will call each other to attack us, just like people invite others to share a meal. When asked if that’s because we’ll be few, he ﷺ said no, we’ll be many, but we’ll be like scum carried by a flood. Allah will remove the awe our enemies have for us and cast wahn into our hearts. When asked what wahn is, he explained it’s loving this dunya and hating death. (Sunan Abi Dawud 4297, also authenticated by scholars). Does this mean we’re doomed to be punished? Jazakum Allahu khairan for any insight.