Is the story of the pious man who was punished for the sins of his village people because he abandoned enjoining good and forbidding evil an authentic prophetic hadith?

The aforementioned hadith is very weak, and what is preserved is that it is a saying of Malik ibn Dinar. It is from the Israʼiliyyat (Judeo-Christian traditions) which are neither to be believed nor disbelieved. The correct view is that not forbidding evil necessitates collective punishment, and if evil becomes widespread, the righteous will perish along with the wicked, then they will return to the mercy of Allah.