The first written accounts of the Companions was compiled centuries after their deaths by Bukhari and ibn Hisham, both of whom lived hundreds of miles away from where the Sahaba lived and died. Santa has more backing up his existence
It’s true that would absolutely leave gaps, and I agree its comparable to playing the telephone game, in a way, but you’d be hard-pressed to prove all accounts are fables, like Santa. Much is hard to prove from the past, and accounts from people centuries later are often used as more-or-less sources for consideration, ie Herodotus. Pre-modern history is often that elusive.
I’d agree the Hadith isn’t credible on the whole as something I’m expected to follow, but I’d be going far to claim there aren’t nuggets of actual teachings and events pertaining to the religion, and that all it’s characters are myth.