The hadith is authentic and was narrated by Muslim. There is no contradiction between it and belief in divine decree, because the evil eye itself is part of the decree of Allah, the Most High, and its effect only occurs through what Allah has decreed and willed.
The statement of the Prophet ﷺ, “If anything could precede the divine decree, the evil eye would precede it,” is an expression of emphasis intended to demonstrate the strength and swiftness of the evil eye’s effect. It does not mean that the evil eye can precede or repel the decree of Allah. That is impossible, because Allah’s decree is effective, and nothing occurs except by His knowledge, will, and decree.
The scholars have explained that the meaning of the hadith is: If it were assumed that anything could precede the divine decree, then the evil eye would be the first thing to do so because of the intensity of its effect. But it does not precede the divine decree—so how could anything else do so?
Thus, the hadith combines two matters:
Affirming the reality of the evil eye and the strength of its effect, which is why ruqyah, seeking refuge in Allah, and taking appropriate means have been prescribed.
Affirming that the evil eye does not go beyond Allah’s decree, so whatever befalls a person because of it was already encompassed by Allah’s knowledge and decree.
Accordingly, it is not correct to say that the evil eye overcame the divine decree. Rather, the correct understanding is that the affliction caused by the evil eye itself, as well as whatever harm results from it, is all within the decree of Allah, the Most High.
And Allah, the Most High, knows best.