Regarding people being punished on the Day of Resurrection who say Laa Ilaaha Illallaah, then it is similar to what Shaykh Albany rahimahullah said,

من قام بلوازم الشهادتين من التزام الفرائض و الابتعاد عن الحرمات , فالحديث حينئذ على ظاهره , فهو يدخل الجنة و تحرم عليه النار مطلقا

“He who sustains the full meaning of the two shahaadahs by carrying out the waajibaat and abstaining from the haraam, then in this case the hadeeth is to be applied literally, that he will enter Paradise and he will be absolutely prevented from entering the fire.” End translation. [Silsilah Ahadeeth As-Saheehah]

Translated by

AbdulFattaah Bin Uthman
Abu Fajr