Narration is not authentic, because it tries to deviate away from Quran, which is the primary source of religious guidance. Why would the Prophet PBUH urge his followers to tell each other stories of Bani Israel taken from non-Quranic sources, when he already delivered to us a complete, perfect, and fully detailed Scripture (6:114, 12:111, 16:89), which cites all kinds of examples for our guidance (39:27), and whose verses are clear and detailed (11:1)?
Apparently, this narration must have been fabricated by people who had little actual interest in learning the true content of religion and were more eager on story-telling and enjoyment through these stories. Israiliyat which originate primarily from Jewish sources are highly controversial and unauthentic stories. Quran already criticizes Jews for having willfully distorted the original message of God (2:75, 5:13, 5:41, 7:162). There is no reason to believe that Prophet would encourage us to give any importance to such stories let alone spread them among us, when we have the Quran.
Regarding the first part of narration, conveying single or disjointed verses in this age has no purpose or meaning, when everyone has access to complete Scripture and we have no excuse not to study it in its totality and proper context.
Ghamidi sahab has correctly understood and explained that Quran is not meant to be a book of quotations or Aqwal e Zerrin. If studied in this style, it does not convey the message in its full context.