وَيَقْطَعُ التَّلْبِيَةَ إِذَا ابْتَدَأَ بِالطَّوَافِ، وَيُقِيمُ بِمَكَّةَ حَلَالًا
Translation: He stops reciting the talbiyah when he begins tawaf, and then stays in Makkah in a state outside ihram.
Here halalan means living outside the restrictions of ihram once Umrah is completed. Talbiyah stops at the start of tawaf, whereas release from ihram occurs after shaving/trimming; these are not the same event.