That is an extremist interpretation on Quran 8:59-60.
When muslims "feared" that peace treaty was broken, they are entitled and permitted by Allah to an extremely violent response?
I disbelief in your allah, you( a peaceful muslim) are entitled to burn my house?
Here is a better translation.
Quran 8:59-60
"And if you ˹O Prophet˺ see signs of betrayal by a people, respond by openly terminating your treaty with them. Surely Allah does not like those who betray.
Do not let those disbelievers think they are not within reach. They will have no escape."
Signs = evidence, indications, proof, etc.
Also note Allah orders it to be terminated openly. Means you go and inform them of your findings, and clearly declare the agreement is void due to the findings.
In a way we are ordered not to be deceitful in our dealings.