"Yes, whoever earns evil" - the evil here is polytheism (shirk), "and his sin has encompassed him" - meaning he died without having repented from his polytheism... the verse.
﴿بلَى من كسب سَيِّئَة﴾ السَّيئَة هَا هُنَا: الشّرك ﴿وأحاطت بِهِ خطيئته﴾ أَي: مَاتَ وَلم يتب من شركه … . الْآيَة.