"and all that is in it": to include the property of the righteous ones who live in the city. From here they ruled: The property of the righteous ones (who live) in it is destroyed; and (the property of the righteous ones who live) outside of it "escapes." And (the property of) the wicked ones, whether inside it or outside of it is destroyed.
"and its beasts": and not the beasts of hekdesh (those consecrated as offerings).
(Devarim 13:17) "And all of its spoil": to include the property of the wicked (found) outside of it.