There is difference on whether it is abrogated or not. The ruling however is the same, as no compulsion of religion applies to those from whom Jizyah is taken, refer to this and this.
(The translations below are my own so treat with caution as they can contain mistakes and omissions).
روي عن الضحاك والسدي وسليمان بن موسى أنه منسوخ بقوله تعالى يا أيها
النبي جاهد الكفار والمنافقين وقوله تعالى فاقتلوا المشركين
It is narrated from Dahhak, Sudi and Suleman bin Musa that this verse
is abrogated by the saying of Allah: "O Prophet, fight against the
disbelievers and the hypocrites" [9:73] and
the saying of Allah: "Then kill the polytheists"
[9:5].
وروي عن الحسن وقتادة أنها خاصة في أهل الكتاب الذين يقرون على الجزية
دون مشركي العرب لأنهم لا يقرون على الجزية ولا يقبل منهم إلا الإسلام أو
السيف
It is narrated from Hasan (al-Basri) and Qatadah that this verse is
specific to the Ahlul Kitab who have accepted paying Jizyah. It is not
applicable to the Arab polytheists because Jizyah is not acceptable
from them, for them there is only either acceptance of Islam or the
sword ...
— Tafsir al-Jassas
:اختلف العلماء في هذه الآية على ستة أقوال
The Ulema differed on the interpretation of this verse and there are six sayings:
الأول:- قيل إنها منسوخة، لأن النبي صلى الله عليه وسلم قد أكره العرب على دين الإسلام وقاتلهم ولم يرض منهم إلا بالإسلام، قاله سليمان بن موسى، قال: نسختها "يا أيها النبي جاهد الكفار والمنافقين". وروي هذا عن ابن مسعود وكثير من المفسرين
First:- It is said that this this verse is abrogated, because the Prophet ﷺ compelled the Arabs to the religion of Islam and fought them and did not accept anything from them except Islam. Suleman bin Musa said this and he said: it is abrogated with this verse: "O Prophet, fight against the
disbelievers and the hypocrites" [9:73] . Ibn Masud and many other exegetes narrate this as well.
الثاني:- ليست بمنسوخة وإنما نزلت في أهل الكتاب خاصة، وأنهم لا يكرهون على الإسلام إذا أدوا الجزية، والذين يكرهون أهل الأوثان فلا يقبل منهم إلا الإسلام فهم الذين نزل فيهم "يا أيها النبي جاهد الكفار والمنافقين". هذا قول الشعبي وقتادة والحسن والضحاك. والحجة لهذا القول ما رواه زيد بن أسلم عن أبيه قال: سمعت عمر بن الخطاب يقول لعجوز نصرانية: أسلمي أيتها العجوز تسلمي، إن الله بعث محمدا بالحق. قالت: أنا عجوز كبيرة والموت إلي قريب! فقال عمر: اللهم اشهد، وتلا "لا إكراه في الدين"۔
Second:- It is not abrogated. Infact it is was specifically revealed about the Ahlul Kitab that they will not be forced to accept Islam when they pay Jizyah. The ones who will be forced are idolaters, from them nothing will be accepted except Islam, and about them the verse "O Prophet, fight against the
disbelievers and the hypocrites" [9:73] was revealed. This is the saying of Sha'bi, Qatadah, Hassan and Zahak and the evidence for this is the tradition that Zaid bin Aslam narrated from his father. He said: I heard Umar bin Khatab, he was asking an old Christian woman to accept Islam: "Accept Islam and you will be saved, verily Allah has sent Muhammad with the truth". She replied: "I am very old and close to death." On this Umar said: "O Allah! Bear witness." and then he recited: "Let there be no compulsion in religion".
— Tafsir al-Qurtubi
وقال قتادة وعطاء : نزلت في أهل الكتاب إذا قبلوا الجزية وذلك أن العرب كانت أمة أمية لم يكن لهم كتاب فلم يقبل منهم إلا الإسلام فلما أسلموا طوعا أو كرها أنزل الله تعالى : ( لا إكراه في الدين ) فأمر بقتال أهل الكتاب إلى أن يسلموا أو يقروا بالجزية فمن أعطى منهم الجزية لم يكره على الإسلام
Qatadah and 'Ata said that this verse was revealed about the Ahlul Kitab, when they accepted payment of Jizyah. Before them the Arabs were ummi, no book had been revealed on them, so nothing was accepted from them except Islam ... Then the command was given to fight with the Ahlul Kitab until they accept Islam or agree to pay Jizyah. And when they paid Jizyah they were not compelled to accept Islam.
وقيل كان هذا في الابتداء قبل أن يؤمر بالقتال فصارت منسوخة بآية السيف وهو قول ابن مسعود رضي الله عنه
And it is said that this was in the beginning of Islam, before the command to fight, and was abrogated by the verse of the sword. And this is the saying of Ibn Masud.
— Tafsir al-Baghawy