This hadith, like every other hadith, should be judged in accordance with Quran and what does it have to say about this, since Quran is the only Criterion (2:185, 3:4, 25:1) and Scale (42:17, 57:25) to distinguish truth from falsehood.
Quran is very clear that the only thing God has bestowed upon His Prophet was the Book/Scripture, which is Complete, Perfect, and Fully Detailed (6:38, 6:114, 6:115, 10:37, 11:1, 12:111, 16:89, 41:3), which is Sufficient (Yak’fi) (29:51), requiring no sunnat, hadith, ijma, or any other source or book to supplement it (7:185, 45:6, 68:37, 77:50). God has repeatedly testified that He has given Quran to the Prophet (4:105, 6:92, 6:114, 7:2, 15:87, 26:192-194, 27:6, 32:2-3, 35:31, 42:52, 56:80, 69:43-46), while no such evidence exists for Sunnat or any other source.
God also instructed the Prophet to only follow Quran (6:106, 10:109, 33:2, 75:18), and to preach, warn, and remind people through Quran Alone (6:19, 6:92, 7:2, 16:44, 27:91-92, 32:3, 42:7, 50:45). Prophet himself also repeatedly announced, on God’s direction, that the only thing he followed was Quran (6:50, 7:158, 7:203, 10:15, 46:9), and not anything else.
Moreover, Prophet was directed by God to only deliver one thing: Quran and that alone, and nothing else (3:20, 5:67, 5:92, 5:99, 13:40, 16:35, 16:82, 24:54, 29:18, 42:48, 64:12, 72:23, 72:28). Prophet was also accountable and responsible for delivering only one thing: Quran (5:67, 24:54), and not Sunnat or anything else. God has also directed the Believers to acknowledge and have faith in Quran (2:121, 4:136, 17:107, 47:2) and follow only Quran (6:155, 7:3, 7:157, 39:55). Accordingly, both the Prophet and his nation will be questioned on the DoJ about Quran, and not about any of the other sources (7:6, 43:44). At that time, the Prophet will be disappointed over his nation and will complain to God that his people had abandoned the Quran (25:30).
Furthermore, God has directed that all matters are required to be judged through only one source: Quran (4:105, 5:44, 5:48, 5:49). All controversies and disputes (of religion) are to be settled through only one source: Quran (2:213, 16:64). All Shari’a is exclusively decreed and authorized by God and the source of all such divinely issued Shari’a is only Quran (42:21). Therefore, no Shari’a lies outside of Quran.
God has also clarified that instead of the prevailing traditions at any point in time (such as Hadith, Sunnah, Ijma, Qiyas, Established History, Opinions and verdicts of scholars etc etc), the only thing Believers should follow is God’s Revelation, which is Quran Alone (2:170, 31:21).
Please also note that the only thing which is free from inspiration of fancy words by enemies of Prophet among Humans and Jinns is Quran (6:112-113), while other sources of religion are not. Quran is also free from all doubts/lies (2:2, 10:37, 32:2), and free from distortion and deviousness (39:28), while other sources including Sunnat cannot make any such claim. Quran is Divinely Protected in all ways (15:9, 22:52, 26:210-212, 41:42, 56:78, 72:9), and better than all the “Consensus” (10:58, 17:88). Quran is endorsed by testimony from God (and angels) (4:166, 6:19, 11:17), while Sunnat as a source of religion is not even mentioned by God, not even once.
God promises that salvation is achieved by following God’s Guidance (Huda’ya) alone (2:38, 20:123). God’s Guidance (Huda) refers to Quran and not Sunnat or Hadith (6:157, 7:52, 7:203, 10:57, 12:111, 16:64, 16:89, 31:3, 41:44, 45:20).
There is nothing similar to Quran. This hadith is fabricated by those who takes others as associates with God, and make laws which are not authorized by God.
29:51 Is it not enough for them that We have sent down to you the book, being recited to them? In that is a mercy and a reminder for people who acknowledge.