Imām Ibn al-Jawzī (d. 597/1201) summarized the scholars' opinions in his book "Zād al-Masīr" as follows:

1. A woman from the Anṣār (the Helpers in Madinah) in the pre-Islamic period used to swear that if a child of hers lived, she would make him a Jew. When the Jews of Banū al-Naḍīr were expelled, there were some sons of the Anṣār among them. The Anṣār said, "O Messenger of Allah, our sons!" Then this verse was revealed. [Ibn ʿAbbās]
Al-Shaʿbī said, "The Anṣār said, 'By Allah, we will compel our children to embrace Islam, for we only made them follow the Jewish religion because we did not know a religion better than it.' So this verse was revealed."

2. A man from the Anṣār had two sons who had converted to Christianity before the Prophet (ﷺ) was sent. They later came to Madinah, and their father insisted, saying, "By Allah, I will not let you go until you accept Islam." They refused, so they disputed before the Prophet (ﷺ), and this verse was revealed. This is the opinion of Masrūq.
3. Some children were being nursed among the Jews. When the Messenger of Allah (ﷺ) expelled Banū al-Naḍīr, they said, "By Allah, we will go with them and follow their religion." Their families tried to prevent them and wanted to force them to embrace Islam, so this verse was revealed.
4. A man from the Anṣār had a servant named Ṣubayḥ whom he was trying to force into Islam. This verse was revealed. These last two views were both narrated from Mujāhid.

What is the context of revelation for this āyah?

Imām Ibn al-Jawzī (d. 597/1201) summarized the scholars' opinions in his book "Zād al-Masīr" as follows:

1. Some maintained that it is operative (*muḥkam*) and considered it a general statement with specific exceptions, meaning that the People of the Book are not forced to accept Islam but are given a choice between embracing it or paying the levy (*jizyah*). [Reported from Ibn ʿAbbās, Mujāhid, Qatādah]
Ibn al-Anbārī stated: "The meaning of the verse is that religion is not what one outwardly professes under compulsion, without the heart testifying to it or the conscience embracing it; rather, religion is what is firmly established in the heart."

2. Another group took the view that the verse is abrogated, stating that it was revealed before the command to engage in combat. According to their view, it is abrogated by the verse of the sword (Ed: usually taken to mean 9:5). [Al-Ḍaḥḥāk, al-Suddī, Ibn Zayd]

Is "no compulsion in religion" abrogated?

Imām Ibn al-Jawzī (d. 597/1201) summarized the scholars' opinions in his book "Zād al-Masīr" as follows:

1. The devil(s). [ʿUmar, Ibn ʿAbbās, Mujāhid, al-Shaʿbī, al-Suddī, Muqātil, and others]
2. Soothsayers. [Saʿīd ibn Jubayr, Abū al-ʿĀliyah]
3. Sorcerers. [Muḥammad ibn Sīrīn]
4. Idols. [Al-Yazīdī, al-Zajjāj]
5. The rebellious ones among the People of the Book. [Mentioned by al-Zajjāj also]