A Muslim should be intelligent and not be ready to believe any story or narration without referring to the authentic references of Islam and making sure of what has been passed to him.
As for the Prophet meeting Iblis, it is a fabricated report and has no basis in the authentic books of Hadith or any other authentic references of Islam. Such a meeting never happened. The hadith is a collection of some statements from some other hadiths, some authentic and some not. The story in full is not authentic and is totally fabricated. Hence, it is not permissible to transmit it or propagate it among people.
Focusing on this issue, we cite what Imam Ibn Taymiyah stated in his Al-Fatawa Al-Kubra:
“This is a totally fabricated hadith. There is no mention of such a hadith in any of the authentic books of Islam, nor in the books of hadith. Whoever comes to know this should never transmit that story afterwards. If he insists on transmitting it, after knowing that it is fabricated, he is to be punished for this and he is sinful.
In fact, the person who fabricated that story collected some statements from some authentic hadiths and some other statements from other hadiths that were classified from weak to fabricated. That is why some of the words in that fabricated hadith look genuine. However, the whole story, that is, the meeting between the Prophet and Iblis, is fabricated. It is mere lies and slander and is not mentioned by any considered Muslim scholar.”