I agree with all you say but not all that is true of biblical narratives. The Bible presents the events described in historical narrative as history. Real people really did these actual things.
Example: Luke 1:1-5 Many have undertaken to draw up an account of the things that have been fulfilled among us, 2 just as they were handed down to us by those who from the first were eyewitnesses and servants of the word. 3 Therefore, since I myself have carefully investigated everything from the beginning, it seemed good also to me to write an orderly account for you, most excellent Theophilus, 4 so that you may know the certainty of the things you have been taught. 5 In the time of Herod king of Judea there was a priest named Zechariah, who belonged to the priestly division of Abijah; his wife Elizabeth was also a descendant of Aaron.
This is remarkable. Luke doesn’t present Jesus as a fanciful illusion of his personal ideas – true for him, but not true historically. He presents the gospel narrative in the same style as the great Greek historiographers. These events are set in a historical context – with Herod king, and the division of Abijah serving in the temple courts.
I accept that as true and reliable.