Why did they later embellish the Buddha's life story? Isn't that tantamount to lieing, which seems like bad karma considering what they're lieing about.
I honestly don't know what to make of all the stories about devas and Jakarta tales, etc. In my opinion, it's doesn't matter that much, because the main message about the path and walking it doesn't get lost due to these stories. If anything, many of them illustrate important lessons. However, the idea that they're embellishments really doesn't sit well with me.