How does Islam seem forgiven and merciful?

Allah said in his Holy Qur’an general criterion in Sura Al-Baqara verse (286) “Allah does not charge a soul except [with that within] its capacity”

• One of the greatest forms of this tolerance and justice is to believe in all the Prophets without differentiating among them.
• Islam invited people to cooperate for good. That’s exactly mentioned in the holy Qur’an in Al-Maaida Surah “And cooperate in righteousness and piety, but do not cooperate in sin and aggression. And fear Allah; indeed, Allah is severe in penalty.”
• Islam stated that the differences among other religions don’t prevent the good deal and exchange of profits.
• Islam legalized Jihad to spread freedom, establish justice, and free people from the chains of tyranny especially for poor people.

There were a lot examples that presented the tolerance and fair of Islam in the wars

1. Islam forbade the killing of children, women, elderly, and people in monasteries {in case that they are innocent and not related to war}.
2. Muhammed _peace be upon him_ forbade cutting trees and palms in the wars.
3. Muhammed the prophet forbade fighters to slaughter any animal in the war otherwise in the case of eating.
4. Allah in Islam asked Muslims to keep the commitments. It appears in Sura An- Nahl (91) “And fulfill the covenant of Allah when you have taken it, [O believers], and do not break oaths after their confirmation while you have made Allah, over you, a witness. Indeed, Allah knows what you do”.. The Prophet Muhammad established a compact with the Jews in Almadeenah city, and that provided for forgiveness, pardon, and cooperation for good and common interest. But Jewish as usual violated of the covenant.
5. Muhammad –peace be upon him- was so tolerate and kind with his servant “Anas”. Anas said that he worked on the prophet for ten years and the result was that the Messenger have never shouted to him, nor said to him no, nor obliged him to do something he didn’t want.
6. Qur’an clear invitation for Muslim to live with justice, fair, benevolence, help the relatives. And at the same time, avoid aggrieve. It appears in AN- Nahl Soura (90) “Indeed, Allah orders justice and good conduct and giving to relatives and forbids immorality and bad conduct and oppression. He admonishes you that perhaps you will be reminded.”