Why just that one? (Which, in any case, always has the middle clause - “except for villainy in the land” - surgically removed from it; as well as the huge fact that it was aimed at the “Children of Israel”, not at Muslims.) Is it because there are no other pacifist-sounding passages in the Koran? Thus this well-known single sentence is all we, or Muslims, have to go on when it comes to Islamic commandments against killing or murder.
“Make war on them until idolatry shall cease and Allah's religion shall reign supreme.” - Koran, 8:36