Are the last two verses of Surat Al-Baqarah sufficient for obtaining reward if recited outside of prayer, or is the reward specific to reciting them within prayer? And what is the Shariah definition of good character?

The aforementioned Hadith is agreed upon as authentic. The meaning of "kifatahu" (they sufficed him) has been interpreted as: they sufficed him from all ailments throughout his night, or it has been interpreted as: they sufficed him from having to perform night vigil (qiyam al-layl). It is not a condition to recite them during prayer, and the reward is obtained by anyone who recites them at any time during the night.