All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad, sallallaahu ‘alayhi wa sallam, is His slave and Messenger.
This Prophetic narration which you mentioned in the question is reported by Ibn ‘Asaakir, by Al-Asbahaani, and by Hibat Allaah Ash-Shaafi’i . However, we have not come across any statement of the scholars about its classification and whether or not it is an authentic narration.
Nonetheless, it is known that many Sufis exaggerate about the Prophet and claim that he was created from light.
Allaah clarified to us in the Quran that the Prophet was a human being and he had the characteristics of humans exactly like all other people. Allaah Says (what means): {Say, “I am only a man like you.}[Quran 18:110]
Moreover, the Prophet informed us that the angels were created from light and the jinn were created from fire, and that Aadam was created from clay. [Muslim]
There is no evidence from the Quran or the Sunnah of the Prophet which negates this fact.
For more benefit, please refer to Fatwa 83805.
Allaah Knows best.