Yes and no. I believe the story gives us a lot of clues as to the actual history of events that did take place and clues of the culture(s) of the time.
When we learned the truth about Santa Claus, I was delighted to know that grown-up imaginations could greatly supersede what I, as a child, could come up with. I loved all the embroidery, and I caught the connections to an even more traditional Christmas story. Imagination. Embroidery. Connecting. Great stories have all these elements.
On the other hand, my cousin was horrified by the lie of Santa Claus, swore then and there (and carried it out) that he would, from the very beginning, tell his children the truth about Santa Claus.
Seriously, I can’t remember a time that I read the Bible as always literally true. The clues about Santa were always front and center for the discerning to see and to understand. The truth was there, shining and all lit up. Jonah and the whale; Balaam and the donkey. Then, as I grew older, science so aptly added to our knowledge of ancient days and times, and it was even easier to see how the stories sprang out of them, the truths now shining and all lit up–embroidered beautifully.
Most of the women and girls (including me) loved to embroider. Just as it is easy to discern the pillow case from the embroidery, so it can be easy to discern fact from story/embroidery. Just as embroidery can enhance and call attention to a pillowcase, so can embroidery enhance and call attention to a fact. I like the ancients way of doing this. Truly, at times they must have lived a very bleak existence. Their response (at least sometimes): Singing and dancing and storytelling, not moping, depression, and glumness.
Still, just as two people in the same family can grow up with one preferring stark reality and plain pillowcases, the other preferring highlights and embroidery, people can approach the Bible as stark reality, the other as highlights and embroidery so that people cannot miss the truth, the lessons, and the connections being presented. (One of those connections being all of those impotent Egyptian gods versus the One, powerful God.)